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sir , i dont understand why do we have to again deduct the dealers commission from ib bank interest rate as .75% after considering commission was already deducted from 2%. [Video Time Stamp: 18:10] Video Details ------------- Advanced Financial Management - AFM Interest Rate Risk Management #48. Illustration # 21
Answers (1)
It is not subtracted twice. It is subtracted only once. Please write down the numbers and see. I showed it once for understanding purpose and second time I showed it as a reduction in actual cost Look at final combined cost of both parties and see how much is it lower than original cost