Forums
illustration number 16
AFM
answered on 09-Jun-26 13:07
sir npv means cashoutflow -pv of cash inflow is it here face value 10000 why we are not taking face value as outflow? sir current market price means is it price at the time when we purchase the bond? or price presenting running in the market? [Video Time Stamp: 08:28]
latest answer
Face value is not outflow because investment is made at 10790 which is correct outflow Final inflow is face value of 10000 In this context cmp is same as price in mkt and at which investor invested
saipriya v
CA Final
★ 510
1
64
illustarion no 4
AFM
answered on 08-Jun-26 14:45
sir why we don't get 100 as bond price when yield and coupon at 10%
latest answer
Because redemption is at price different than 100 Only if redemption is at par, coupon will be equal to YTM else they both will be different
saipriya v
CA Final
★ 510
1
72
No loss - MV approach
AFM
answered on 07-Jun-26 21:35
Sir, though we use MV approach assuming same PE post merger, still the Shareholders of NN lose out in EPS as Post merger EPS for NN shareholders (78/14.1818)*0.7273 = 4 vs Pre merger EPS - 6. Are we considering no loss in only perspective of Market Capitalisation? [Video Time Stamp: 19:12]
latest answer
Yes If Question specifies gain loss from a specific perspective use it. Else compute gain or loss on mcap and eps basis. Have explained this in subsequent problems
SANJITHA
CA Final
★ 1K+
1
117
Cost to Acquirer
AFM
answered on 08-Jun-26 10:27
Sir, whether the gain from synergy shared to target (Doom) is considered as cost to Acquirer (Elrond) Shareholders? [Video Time Stamp: 06:36]
latest answer
yes
SANJITHA
CA Final
★ 1K+
1
115
Illustration 33
AFM
answered on 07-Jun-26 14:53
Sir, when the portfolio return is negative, why do we calculate net receipt by adding the negative portfolio return to the fixed return? My understanding is that we actually receive only the fixed return of 4.6. Could you please clarify this? [Video Time Stamp: 00:11]
latest answer
Return One party say A pays fixed and other party B pays variable If variable return is negative value then instead of B paying A, B will end up receiving from A
Mhd Mmp
CA Final
★ 740
1
115
Illustration 13
AFM
answered on 07-Jun-26 13:48
Sir, instead of taking the June month rate of 8,850, why have we not taken the theoretical price of 8,935.795? [Video Time Stamp: 11:25]
latest answer
When we enter into a buy or sell contract on an exchange we arrive at it based on price quoted on the exchange and not what we think is the theoretically right price
Vaikundaraja A
CA Final
★ 18K+
1
66
Illustration 31
AFM
answered on 07-Jun-26 13:26
Sir, if a derivative contract is held till maturity, is squaring off required, or does settlement take place automatically on the expiry/maturity date? [Video Time Stamp: 16:33]
latest answer
If u don’t square off on your own Sometimes exchange may enforce the contract by asking you to deliver / take delivery for stock options
Mhd Mmp
CA Final
★ 740
1
66
Provision for Bad debts
AFM
answered on 06-Jun-26 14:58
Sir, the question mentions that "Bad debt Provision of Rs. 40 Lakhs is included in indirect expenses and Rs. 40 Lakhs reduced from receivables in current assets." Since 40 Lakhs has to be reduced from Receivables, it must be a pre-tax provision. Can we infer this way sir? [Video Time Stamp: 00:25]
latest answer
Yes you can
SANJITHA
CA Final
★ 1K+
1
76
macaulay duration
AFM
answered on 06-Jun-26 15:49
sir this denominator 100 means facevalue of bond 100 (macaulay duration excel working) [Video Time Stamp: 15:01]
latest answer
Yes
saipriya v
CA Final
★ 510
3
80
Illustration 30
AFM
answered on 05-Jun-26 22:40
Sir while computing value of u and d why consider denominator as investment value rather the present value of 250 [Video Time Stamp: 05:20]
latest answer
Because 250 per year is value of current savings per year and that is irrelevant. When you look at risk neutral method for financial options also, you are indifferent to gap between current spot and strike. You are only bothered abt future spot and strike. Same logiic applies here too
Mhd Mmp
CA Final
★ 740
1
68