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Cap Option

AFM

answered on 11-Apr-26 09:33

Suppose as on 31st March LIBOR is 9% (i.e. applicable for June Interest payment ) Now RIL want to limits its interest rate to 8%. Why the bank will agree to compensate 1% as they allready know the LIBOR as on 31st March. Instead bank will not enter into such option agreement. What is the logic behind bank will enter into such option contract even though knowing the LIBOR each other. [Video Time Stamp: 12:35]

latest answer

That is why the cap will not be for immediate payment but from next payment onwards for which libor is unknown

G Chandrakanta

G Chandrakanta

CA Final

15K+

1

25

Co variance matrix

AFM

answered on 11-Apr-26 09:40

Sir if formula for co variance is (b1)(b2)(variance of market) then for AA, isn't it (0.8)(0.8)(15)^2 [Video Time Stamp: 08:12]

latest answer

Co variance of a stock with itself you don't multiple betas and market variance. it is simply variance of the stock

Nitin Raj

Nitin Raj

CA Final

270

1

31

Recognition period

Accountancy

answered on 15-Apr-26 10:35

Sir, If any AMC work is completed on monthly basis and the payment is paid Annually, Cant we recogmise the revenue on monthly basis?? Or it should be recognition only quarterly wise.?? Or is there any rules in accounting that accounting should be done, Quarterly, Bi Annually, or Annually?? [Video Time Stamp: 00:17]

latest answer

In such cases generally, it would be done on monthly basis.

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

1

46

Cost and management audit

Auditing

answered on 20-Apr-26 17:19

Please provide classes for cost and management audit

latest answer

Please get in touch with our team

Kommoju Kavya sree

Kommoju Kavya sree

CMA Final

0

1

32

Provison problem .

Accountancy

answered on 21-Apr-26 08:43

1.In last problem,Whether company decision of 'Not to provide for after sale expenses ' is change in policy or estimate? 2.How to figure out whether it's violation of as 29? 3.If its violation of as 29. Then disclosure is not a remedy for in-app or wrong treatment of accounting. [Video Time Stamp: 14:05]

latest answer

Ok sir thank you

Geeta B

Geeta B

CA Inter

5K+

2

51

Bond

CFA

answered on 10-Apr-26 12:30

If i buy a G sec bond in india and after i bought the bond if intrest rates went down will my bond price go up?if it goes up can i sell the bond at the current price? Kindly explain how this works

latest answer

Yes. It goes up. You can check prices on NSE.

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

1

32

Yield as on 30/06/18

AFM

answered on 10-Apr-26 16:33

Sir, we computed PV as on 30/06/2018 by discounting yield % as on 01/03/2018. Don't we need yield as on 30/06/2018. Though it is not provided in question, what is the correct way of doing. [Video Time Stamp: 06:49]

latest answer

no. We assume same Yield is applicable for all future periods from 1/3 till maturity of bond. that is underlying assumption of YTM or IRR

SANJITHA

CA Final

55

1

34

Discontinued operation

Financial Reporting

answered on 10-Apr-26 09:59

Sir in illutration 14, part 2, the activities has been ceased without selling any assets. As per definition of discontinued operations " Discontinued operation is a component of an entity that either has been disposed off and is classified as held for sale". In this question we said that it is not classified as held for sale... and also not disposed off... but we classify this as discontinued operation. Am I missing something? Can we classify a component as DO without being disposed off or classified as HFS? [Video Time Stamp: 02:12]

latest answer

even though the assets weren't sold, the activities have ceased. If theoperation represents a separate major line of business or geographical area and by stopping all operations, the entity has effectively "disposed of" the business through abandonment.

Balavignesh

Balavignesh

CA Final

750

1

46

LIBOR and ARR

AFM

answered on 10-Apr-26 09:03

Sir here what it means Secured and Unsecured nature? [Video Time Stamp: 10:49]

latest answer

Yes they are benchmarks You can add spread if a borrowing is secured but bench mark is unsecured

G Chandrakanta

G Chandrakanta

CA Final

15K+

3

37

In Devaluation any decrease .?

AFM

answered on 09-Apr-26 21:16

is any example which is decrease in case of devaluation.? [Video Time Stamp: 07:30]

latest answer

Devaluation will have impact like what we discussed in class. It cannot have opposite impact

Vinod Kumawat

Vinod Kumawat

CA Final

1K+

1

41