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Is reason for answer is true??
AFM
answered on 07-Jun-24 16:58
For Bond X : Macaulay Duration is 4.49yrs For Bond Y:: Macaulay Duration is 4.64yrs Can we directly select Bond A as Macaulay Duration is low
latest answer
Yes you can
Surya Prakash
CA Final
★ 19K+
1
358
Doubt in MF question
AFM
answered on 07-Jun-24 08:39
Other fixed interest securities are given at cost in question as 2.50. Why they didn't convert that into MV? Such that 2.5*106.50/100= 2.6625
latest answer
2.5 cr is cost. But is cost at FV? Of 100? If you assume that fixed income securities were purchased at par then what u said can be assumed
Revathy N
CA Final
★ 9K+
1
371
Mutual fund
AFM
answered on 07-Jun-24 17:00
MAX (P) a mutual fund made an issue of new fund offer on 01.01.2022 of 10,00,000 units of 10 each. No entry load was charged. It made the following investments: Particulars 25,000 equity shares of PQR Ltd., 100 each @320 - 80,00,000 5% Government Securities -4,00,000 10% Non-Convertible Debentures Unlisted - 5,00,000 8% Listed Debentures - 10,00,000 During the year, dividends of 8,00,000 were received on equity shares and interest on all types of debt securities were received. On 31st December 2022 equity shares were appreciated by 15% while listed debentures were quoted at 20% premium. PQR Ltd. on 15th December 2022 in its AGM declared the interim dividend of 10% bonus shares at 1:10 with the record date of 28th December 2022. Required: (i) Calculate the Net Asset Value (NAV) as on 31st December 2022 given that the operating expenses paid during the year amounting to 3,00,000. (ii) Assess the NAV, if the mutual fund had distributed a dividend of 0.50 per unit during the year to the investors. (iii) Analyze the annualised return. Can anyone answer this question?
latest answer
Share count increases by 10% and price by 15%
Prasanna kumar Tamilarasu
CMA Final
★ 0
3
884
Real Depreciation
AFM
answered on 07-Jun-24 05:11
Hi sir, For real in part 2 we computed ideal Depreciation and for real in part 4 we took Inflation rate. Even though the requirement is same i.e. Real, why we took 2 different things sir ? In part 2 can we compute real depreciation by using US inflation rate i.e. 5% ?
latest answer
In part 4 us inflation is irrelevant as we are bothered abt returns to an Indian investor so only Indian inflation is considered- it has nothing to do with usdinr exchange rate N part 2 they have asked ideal depreciation of currency usdinr so both inflation relates have to be considered
B. Dinesh
CA Final
★ 3K+
1
364
Purchasing using LC
AFM
answered on 06-Jun-24 21:13
Hi sir, In option II 1st step is to purchase equipment using LC and 2nd step is to borrow using LC. As we already purchase equipment in step 1 itself, why do we need to borrow money again in step 2 ?
latest answer
LC / letter of credit is a document where one bank promises to another that the customer is good and the import payment will be paid on time. For this commission is paid by LC opening customer to LC issuing bank. These LCs are for specific time period - usually for credit period offered by the supplier. In the current case, the supplier is not offering any credit. But a foreign bank is offering the credit if there is an LC So what is happening here is as follows: Sun is importing from Japan from a supplier say X X needs to be paid LC is opened by sun in favor of X Sun limited pays LC charges to Indian bank for opening the LC There is something called supplier financing against LC being offered by Japanese bank Sun limit gets the borrowing from Japanese bank X limited gets paid on day 1 But LC is Open and money on LC is due on day 180 Sun pays LC dues on day 180 to Japanese bank On day 180 LC is closed
B. Dinesh
CA Final
★ 3K+
1
355
spot after 10 days
AFM
answered on 03-Jun-24 05:19
Hi sir, since the Forward premium will be even for over a period of time, can we take the spot on 10th day as 55+ premium for 10 days? That will be 55+(56-55)*10/90
latest answer
Yes in real life it is done like that have explained broken dates rates concept
B. Dinesh
CA Final
★ 3K+
1
372
Classes
AFM
answered on 02-Jun-24 17:14
Hi sir, as i already told you i purchased the classes in 2023 for 15k, but due to health issues i could not watch it then. Now what i am doing is , during the theory and concept explanation i will watch the class and pause the video and i will take the notes and during illustrations i will pause the video and do the problem completely, based on my interpretation of question. After that i will watch the class for better understanding. Sometimes 30 min long illustration may take 1 hour or 2 hours, bcz i have to interpret and do the problem and watch classes for the logic behind it. Because of this it is taking more time than i expected to complete watching classes. So i am requesting you to please kindly extend the due date of the class for 30 more days. Thankyou so much for what you already did for me sir. Even if you do not extend i will watch the classes in 2x and just copy paste the problems from what you said, but that's not serve the essence of your teaching sir. That's why i am requesting you to extend for 30 days.
latest answer
We already told u to post such kind of messages to support@indigolearn.com This is a doubt clearing forum
B. Dinesh
CA Final
★ 3K+
1
304
Portfolio Beta
AFM
answered on 01-Jun-24 15:17
Proportion of NIFTY Futures In calculation of Portfolio Beta
latest answer
In denominator The value of portfolio should be 160 only. But in numerator beta should be considered including. Yea of derivative contract
Seetha Jakka
CA Final
★ 3K+
4
401
Borrowings
AFM
answered on 31-May-24 20:40
Hi Sir, By borrowing at the beginning of the period we are paying more interest than we are earning, because of the interest rate difference in CAD and DM. So instead of borrowing CAD at the beginning, if we borrow at the end of the 3 months and convert @ 0.668( Ideal forward rate). We can get profit of 2.994 CAD.
latest answer
Do you know for sure that after 3 months the rate will be 0.668? When fwd rate can be mispriced will spot on that day be correctly priced? When you see a gap today, you take advantage now by locking in rates
B. Dinesh
CA Final
★ 3K+
1
373
Where we are actually getting the profit ?
AFM
answered on 31-May-24 20:41
Hi Sir, We are earning interest @7% in DM and paying @9% in CAD. So if we compare that we are earning 26.31579 DM and we are paying 33.68263 DM. So in interest we are getting loss. Which means total gain we are getting is in Conversion. If So, there is no direct effect of ideal Depreciation(0.668) anywhere right ? Can you explain which factor exactly giving us gains ?
latest answer
once you lock rates, you have locked profit - what is the rate on final date is immaterial
B. Dinesh
CA Final
★ 3K+
3
407