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Mutual fund
AFM
answered on 24-Jan-26 17:35
Is the formula used in question no.8 is correct or is it a mistake sir
latest answer
Thank you sir for clarifying
Divakar P
CA Final
★ 320
2
205
Portfolio Management-Arbitrage Pricing Theory.
AFM
answered on 20-Jan-26 19:28
Sir here with respect to Sensitivity Factor-1 we took (1.5 Lakhs* 0.8) + (-0.5 Lakhs*1.5), then the answer will be 45000/- right? Why we divide it by 1,00,000/-? [Video Time Stamp: 04:42]
latest answer
Thank you sir
G Chandrakanta
CA Final
★ 15K+
2
180
Clean Price and Dirty Price
AFM
answered on 17-Jan-26 19:21
Sir, I am fully confused in Clean Price and Dirty Price concepts. Please explain, sir. [Video Time Stamp: 05:24]
latest answer
👆is for bonds For repo Clean + AI = DP
Murali Thripuraboina
CA Final
★ 3K+
2
128
Premium over the straight value of debenture
AFM
answered on 17-Jan-26 11:51
Sir, I have a doubt regarding Illustration 23 and Illustration 29. In Illustration 23, while calculating the percentage of downward risk, the solution was calculated using: I. (CMP of bond−Straight value)/CMP of bond (which was taught by you in the class), but in the solution, it was also calculated alternately as II. (CMP of bond−Straight value)/Straight value of the bond. However, in Illustration 29, while calculating the premium over the straight value of the debenture, only the second formula (with straight value as denominator) is used. Since one of the formulas used for downward risk is identical to the premium over straight value formula, I am confused whether both concepts are the same. Please clarify the conceptual difference and which denominator should be preferred. [Video Time Stamp: 05:48]
latest answer
Both are diff When we say Premium we are referring to the additive part; for eg in 100 + 10 = 110 , 10 is premium; ideally when computing as % we do 10/100 In downside risk , ideally we should talk of reduction i.e 111-11= 100 in this 11 is downside and it is from 111. ideally when computing as % we do 11/111 for Downside risk in some questions icai gave alt answer as 11/100 ; hence i gave alt solution
Murali Thripuraboina
CA Final
★ 3K+
1
163
Advanced Capital Budgeting Decision - Illustration 2
AFM
answered on 13-Jan-26 12:11
While calculation the Cash flow why didn't we reduce tax i.e.(1-tax) in revenues and costs but have considered tax only in the case of depreciation. Thanks in Advance [Video Time Stamp: 19:48]
latest answer
We did that at 12.12 (R-C) x (1-t) i.e 40%
kaviya boominathan
CA Final
★ 430
1
135
YTM-Approximate Calculation
AFM
answered on 13-Jan-26 12:12
Sir, in this question can we calculate YTM using the YTM formula directly (c= 13, P0 = 100, P1 = 95, assuming Face value as Rs. 100), which comes to 14.18%?
latest answer
Approximate formula is to be used when details are not available or when question specifically asks. Other wise pls use IRR based formula
Murali Thripuraboina
CA Final
★ 3K+
2
158
Repo
AFM
answered on 09-Jan-26 17:02
Sir i have doubt on this formula First Leg = Nominal Value x (Dirty Price/100) x (100-Initial Margin/100) Here, why Dirty Price is divided by 100? My doubt is why divided by 100? is it face value or something else. [Video Time Stamp: 06:26]
latest answer
Understood sir Thank you
G Chandrakanta
CA Final
★ 15K+
2
195
Second Part of the question
AFM
answered on 10-Jan-26 10:36
Sir, What do they actually mean when they say that whether the position ofsets each other ? When i initially solved it , I was not clear with 2nd part of the question. [Video Time Stamp: 06:10]
latest answer
Achaa achaa ! Understood sir !
Hrishikesh Pradhan
Qualified CA
★ 18K+
4
256
Money Market Transaction
AFM
answered on 04-Jan-26 11:17
Sir, If Borrowed in US 1. Enters into Forward contract to Sell Euro 590000 @ $1.9510 2. Euro 590000*1.9510 = $1151090 Adjusted to US Interest rate @13%pa. for 4 months - $1103281.15 Borrowed in US 3. Converted & Invested in France @ 14%pa. for 4 Months - ($1103281.15/$1.8890)*(1+14%*4/12) = Euro 611311.60 4. Converted back into USD = Euro 611311.60*$1.9510=$1192668.92 5. With amt received from customer we will execute forward contract and settle US Loan. If we followed this, the receivable is higher. Why didn't we followed this method?? [Video Time Stamp: 22:31]
latest answer
Ok sir thank you
Sai Eswar Kolli
CA Final
★ 30K+
4
236
Right Issue
AFM
answered on 03-Jan-26 17:32
Sir, while finding shareholders' wealth can't we take 1060 (i.e without adding subscription amount of 150) as pre-rights issue wealth and 1230-150(as issue expenses)=1080 as post-rights issue price, as we did in other problems? I did not understand the logic that the Pre Right issue company has cash of Rs. 150 with them. Please clarify, sir. [Video Time Stamp: 23:15]
latest answer
In public issue money is out in by new shareholder In rights issue existing shareholder subscribes so cash of existing shareholder reduces There are no issue expenses here not sure what you were referring to in your query We can take 1060 and 1080 as u pointed out Pre rights cash of 150 is used to subscribe shares in right issue by existing shareholder
Murali Thripuraboina
CA Final
★ 3K+
1
160