Forums
Fixed income
CFA
answered on 30-Jul-26 11:45
Pls explain what is spot rate curve and whats the difference between yield curve vs spot rate curves?
latest answer
The spot rate curve represents the discount rates for single, individual cash flows occurring at specific dates in the future. Underlying Asset: Based on zero-coupon bonds When we refer to the "yield curve," we are usually talking about the Yield to Maturity (YTM) curve for coupon-bearing government bonds.
Dhakshana Dhakshana
CFA L2
★ 18K+
1
68
Fixed income, CDS
CFA
answered on 30-Jul-26 11:23
Sir here, the cds payoff will only be when the bond ranked in the same level or higher than the reference obligation defaults right, as per the text. But here the reference obligation is senior unsecured and the defaulted bond is subordinated unsecured (which is lower ranked) then why does it cause CDS payoff?
latest answer
Q3 isn't asking "does senior CDS pay off because of the subordinated default?" It's asking "did UNAB experience a credit event?" Failure to pay on any obligation answers that → Yes. The pari-passu / CTD rule only comes in afterward, when you work out the settlement amount on a specific contract.
Kaarthick Abishek
CFA L1
★ 0
1
98
Company Accounts
Accountancy
answered on 05-Aug-26 12:01
Sir, explain this illustration. I am stuck at calls in arrears
latest answer
Applications received: 1,00,000 shares Shares allotted: 75,000 shares Excess applications (25,000 shares) are adjusted against future calls. For a shareholder who applied for 1,500 shares: Shares allotted = 1,500 × 75% = 1,125 shares Excess application money = 375 shares (1,500 − 1,125) Adjustment of excess application money: Excess amount = 375 × ₹9 = ₹3,375 Amount due on first and final call: 1,125 × ₹6 = ₹6,750 Amount still payable (Calls in Arrears): ₹6,750 − ₹3,375 = ₹3,375 Therefore, Calls in Arrears = ₹3,375.
KURVA NARESH
CA Foundation
★ 45
1
102
CH: Company account Unit-2:issue, forfeiture and re-issue of shares.
Accountancy
answered on 05-Aug-26 12:02
Sir, why do we consider forfeited amount on share not yet reissued should be shown under the heading 'share capital'. When we journalise these entry, we have already opened forfeited account for this amount.
latest answer
The forfeited amount represents money the company actually received from shareholders before the shares were cancelled - so a part of shareholders fund.
KURVA NARESH
CA Foundation
★ 45
1
90
Question 6 (iv)
AFM
answered on 29-Jul-26 13:43
In the number of shares it is given as 5000 and 6000 instead of 500 and 600
latest answer
PDF has been changed. Thanks for highlighting
Anand V
CA Final
★ 0
4
103
Ind AS 103 - Indemnification Asset - Deferred Tax
Financial Reporting
answered on 31-Jul-26 20:14
In this q, there is no deferred tax impact in respect of the indemnification asset because it is not taxable. However, had it been taxable, for deferred tax computation, we would have considered tax base to be the amount taxable in future yes?
latest answer
Ah ok, thank you sir!
Vishnu Muraleedharan
CA Final
★ 32K+
2
85
Interest rate differential computation
AFM
answered on 29-Jul-26 08:33
Time stamp : 8:30 In compting interest rate differential why are we subtracting he whole by -1, whereas fpr forward premium we are not subtracting -1. Why and when should we subtract -1? [Video Time Stamp: 09:02]
latest answer
If premium is already given as % for a specific period we need not re compute it
Vijay Ramesh
CA Final
★ 2K+
1
107
Asset characteristic line
CFA
answered on 29-Jul-26 09:52
Why Risk Free rate is deducted on both x and y axis? [Video Time Stamp: 00:37]
latest answer
You are trying to find out how much of excess returns of a security are linked to excess returns of market. Even is you do not subtract excess returns you will get same beta s answer. check attached excel sheet If you subtract a constant number from both x and y for all periods, beta , SD , Co variance and Correlation will remain same when computed before or after subtraction
Prajwal RD
CA Inter
★ 250
1
128
Advanced capital budgeting
AFM
answered on 28-Jul-26 19:51
In this illustration, change in sales is computed as 10,000 In given question it is given as 10% per year based on orginal total sales of rs.10,00,000 So, is it correct that they calculated sales per year as rs. 100,000 and from that that 10% is computed Am I right ?
latest answer
Thank you sir
Sri kanaga Varshini
CA Final
★ 3K+
2
61
Recoognition of Contingent Liability and Indemnification Asset
Financial Reporting
answered on 28-Jul-26 18:50
Sir, you said In case if the value of Contingent Liability is 2 Cr and Indemnification Asset is 1 Cr, We recognise Contingent Liability of 2 Cr and Indemnification Asset of 1 cr So entry will be? Indemnification Asset 1cr To Contingent Liability w.r.t Indemnification 1cr To ???? 1cr OR do we just disclose the balance 1cr of contingent liability? [Video Time Stamp: 13:43]
latest answer
Indemnification Asset Dr 1 Goodwill Dr 1 To Liability 2
Azmi RZmi
CA Final
★ 10K+
1
92