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Illus 7
AFM
answered on 07-Feb-26 16:21
Dear Sir, In illus 7(a), face value has been assumed as Rs.100 though there is an issue price at Rs.90. In illus 7(b), issue price itself taken as face value. How to make the assumption?
latest answer
FV is usually 10 or 100 or 1000 unless otherwise specified Issue price can be at FV or above or below it
Swathi S
CA Final
★ 975
1
201
Illus 4
AFM
answered on 07-Feb-26 20:56
Dear Sir, In this sum, since we know the market price at two diff yields that is at 11% and 13%, and we know that the required yield for the market price to be Rs.97.60 will lie between 11% and 13%, shall we use IRR method formula and arrive the answer. If I do so, I get Yield = 12.016% [Video Time Stamp: 03:43]
latest answer
Yield
Swathi S
CA Final
★ 975
1
164
May 2025 MTP 1
AFM
answered on 07-Feb-26 15:17
Sir, i think institute has made a mistake, while calculating WACC, kd shall be taken post tax , but they have taken it pre tax ! So, if I take post tax, answer obviously comes different. So am I right in such regards?
latest answer
Yes u r right
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
190
Swap points
AFM
answered on 07-Feb-26 13:33
How to identify that the given swap points are forward premium or forward discount in the question?
latest answer
Ok sir thank you
Poorani Prabha Ravi
CA Final
★ 8K+
4
140
MTP 1 Sept 2025
AFM
answered on 06-Feb-26 13:38
In this question, why have they not calculated the FRA amount using our settlement amount wala formula they have only calculated the numerator part while when I was solving i calculated settlement amount using our usual formual
latest answer
IN this question, they are not asking us to compute FRA settlement value - they are asking what is total cost of borrowing if an FRA is entered into and a futures contract is entered into. Even if FRA is net settled on fixing date, firm will actuall borrow for 6 months and the FV of the FRA settlement value is adjusted to int cost of eventual loan - even then you will get the same answer
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
138
Advanced Capital Budgeting
AFM
answered on 05-Feb-26 06:16
Sir, i had a query in respect of presentation, here they have calculated SD an all figures are in lakh, if I do it without rounding off, I.e SD of 8540000 the answer comes obviously different but if did SD of 85.4 L then answer matches with them, in exam how to identify if have to take full figures or how ?
latest answer
exactly
Hrishikesh Pradhan
Qualified CA
★ 18K+
3
150
Advanced capital budgeting decision
AFM
answered on 05-Feb-26 13:19
In this problem, why do we account for inflation in the after-tax cash flows, which already include depreciation? Does inflation affect depreciation in this case?
latest answer
Thank you for clarifying sir
Divakar P
CA Final
★ 320
6
156
Mutual Fund Dividend Equalization Problem
AFM
answered on 05-Feb-26 14:19
Sir in earlier, for these types problems you have solved in different method.(That method is so easy) Should i solve by this new method or old method in exams. Please suggest me as how examiner will valuate. [Video Time Stamp: 24:06]
latest answer
Ok sir, Thank you
G Chandrakanta
CA Final
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2
233
Calculation of Market Price
AFM
answered on 04-Feb-26 13:10
Greetings Sir, Can I use the PV method for computing Market price in the last BPS changes adjustments instead of Change in Price to Change Yield Method. That is discounting by 16% and 14.5%... Because without starting this vdo I've tried doing by myself. I did discounting by adjusting the Yield value... If so how to identify where to use which method or formulae...
latest answer
Ok Sir... Thank You..
Selva Priya
CA Final
★ 4K+
2
172
Video 24 Vs. Video 25
AFM
answered on 12-Apr-26 13:15
Dear Sir, I feel like what you have explained in video 24 looks contrary to what you have explained in video 25. Reason: In video 24, we have made portfolio in such a way considering the yield as 9%. Further, though there is a change in the yield, you have told that the portfolio is still immunized (since it is closer to Rs. 1 lakh). But in video 25, under the 3rd sub division - the question has been solved as "since the duration of portfolio has been increased beyond 6, the portfolio is not immunized. What i understood was - I should create a portfolio in such a way, that it should be immunized irrespective of change in yield. If we go with video 25, then what is the purpose of doing this portfolio analysis. [Video Time Stamp: 24:28]
latest answer
Liability is discounted by Yield that is applicable for the liability period The bonds that are used to immunize this liability will have both different tenure and different yields obviously Else we can use a ZCB for same maturity as liability
Swathi S
CA Final
★ 975
6
189