ACCA F9 The valuation of securities - The valuation of debt

[@emmat2713]

Thank you Sir, but for example 10, i don't understand how the d.f of 3.605 is gotten please. I really need help with that

[@opentuition]

In future it is best to ask questions in the free Ask the Tutor Forum on our website - we don't always see comments posted here :-) It is from the annuity tables that you get in the exam. It is the 5 year annuity discount factor at 12%. (Have you watched the earlier lectures about using the discount tables?).

[@hussnanraza3353]

@@opentuition i can't understand sir example 10 3.605 please help to calculate the discount factor

[@opentuition]

@@hussnanraza3353 Please go to our website and ask in the Ask the Tutor Forum

[@aerkaboev]

He made a mistake when calculating the 5th year interest. It should be 108 not 110. Coupon rate is 8%. Then the Market value will be 360,304