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Practical flow of bond valuation

AFM

answered on 28-Jan-26 20:47

Sir, I have understood the concept of market price, market interest rate and yield to maturity, individually. But how it actually works in the practical world. Like, among the three - which determines which? I couldn't get chronological flow of work of the three concepts in real world.

latest answer

Market Interest rate for g secs is primary it drives Yields on bonds which drives prices

Swathi S

Swathi S

CA Final

970

1

36

Using OM para to refer the modification given for Comparitive FS

Auditing

answered on 29-Jan-26 13:13

Mam, am i correct to understand that, for giving modified opinion for the current year, the auditor will use Opinion para & Basis for Modified opinion para. And for giving reference of modification issued to previous year FS, the auditor will use OM para of the same Audit Report. i.e. the auditor is able to notify modified opinion given to current year as well as previous year or years, in the same audit report? Regardless of the Modified Report that the auditor has issued for the previous years separately for the respective FS of the FY. The auditor is also required to refer such modification in his Current year audit report ? [Video Time Stamp: 05:30]

latest answer

Yes. Your understanding is largely correct. Modified opinion for the current year- Where the auditor concludes that a modified opinion (qualified / adverse / disclaimer) is required for the current year financial statements, the reporting structure shall be: - Opinion paragraph – reflecting the modified opinion and Basis for Modified Opinion paragraph – immediately following the Opinion paragraph, explaining the reasons for such modification. This treatment is mandatory under SA 705 Under SA 710 If the prior period financial statements were modified, and The matter giving rise to the modification is still relevant to the current year (i.e., unresolved, continues to impact comparability, or is material for users’ understanding), then the auditor shall draw attention to such prior-period modification in the current year’s audit report. Through an OM paragraph, and Not through the Opinion or Basis for Modified Opinion paragraphs (unless the matter also causes a current-year modification). this will apply even if prior years already had separate audit reports Even though: Separate audit reports were issued for each prior year, and Those reports already contained the respective modified opinions, the auditor is still required, under SA 710, to refer to such modification in the current year audit report, if it is relevant to the current year financial statements.

Vinod Kumar

Vinod Kumar

CA Inter

11K+

1

55

Convexity

AFM

answered on 28-Jan-26 20:11

Does this second formula for computing convexity is covered under ICAI syllabus, sir? [Video Time Stamp: 08:55]

latest answer

Not in current ICAI SM but is past practice annual You can ignore it

Swathi S

Swathi S

CA Final

970

1

40

MCQ

AFM

answered on 28-Jan-26 16:36

In this MCQ, according to me both option (a) and (c) seems correct, more appropriate would be option (a) but they have given it as option (c)

latest answer

Ohh !! I have to read question more carefully

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

18K+

2

49

Fate of forward contract

AFM

answered on 28-Jan-26 17:03

In this question, bank will enter into 1 month forward to buy Sw Franc, so we will use 0.08% as margin na ? Because in solution, they used 0.10% as margin.

latest answer

Achhaa understood

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

18K+

2

42

Forex

AFM

answered on 28-Jan-26 16:33

In this solution, HSBC purchase means SBI will sell Rs and Euro is base currency means SBI have to buy Euro that means Ask rate will be used right ? As i solved the question using Ask rate , but in solution they have have bid rate, why ?

latest answer

Yes 👍

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

18K+

5

39

Cessation of partners - other points

Corporate & Other Laws

answered on 30-Jan-26 12:32

Mam some these topics are not mentioned in the official icai study material.

latest answer

It was a part earlier now removed. We will update them.

M Sandeep

M Sandeep

CA Foundation

900

1

49

Professional Ethics

Auditing

answered on 29-Jan-26 15:27

As per exemption in schedule 2 , Part 1 , Clause 10 , Can the Auditor keep the client money that is shortly expended in personal savings account or Firms account(Not a Separate Client account) , For example A client gives ₹5,000 Gpay in the morning to buy Stamp Paper that afternoon.

latest answer

Thank you

Prethivi Rajan

Prethivi Rajan

CA Final

9K+

2

56

INCOME TAX QUESTION BANK

Direct Taxation

answered on 27-Jan-26 18:27

Not received Income Tax question bank books after purchasing group 1 Class

latest answer

We will arrange for the same ASAP.

Ganesh Hari Haran

Ganesh Hari Haran

CA Inter

7K+

1

70

Study materials against registration

Others

answered on 27-Jan-26 10:19

I am planning to purchase books from CDS. I have already purchased SPOM books against registration. Can I order only group 1 books now and later can I purchase group 2 books against registration?

latest answer

Yes

Nivedha Balaji

Nivedha Balaji

CA Final

9K+

1

56