Interest Rate Risk Management

Post on: 16 Июнь, 2015 No Comment

Technical Problems

Comments

hamzaharoon says

So, Its End of the F9 Lectures, the best lectures up till now I ever saw, Thank you Sir John, Previously I made up my Mind to take P5 and P7 as Options later but Now I am Seriously thinking to Take P4 too as an additional, I never thought I would Love F9 This much only Because of YOU . If I Pass this Paper Inshaallah on First Attempt then It will be confirmed That I will take P4 in future

hamzaharoon says

And its Confirmed, Thank you So Much Sir John I passed F9 and now I will Definitely Pick Paper P4 as 1st optional Paper, Will see you again on Paper P4 thanks again Sir

John Moffat says

Congratulations

maat9 says

hello sir. can you give me the good revision questions? of all F9.iam waiting for your reply

John Moffat says

All of the exams for the past 4 years are worth looking at again (with less emphasis on the June 2013 exam he does not usually repeat many things in the next exam).

It would be wrong to suggest questions on specific topics the examiner tests as much as he can in each exam.

However, if you look at the exams for the last 4 years then he has covered in them just about everything he is likely to ask this time.

maat9 says

thnaks. but sir you have mentioned as these question. Are these listed below questions have worth. they all are below 2008 past papers.

December 2002 – Q4 – Leaminger – Lease & Buy / Capital rationing

June 2003 – Q1 – Springbank – NPV / ratios

June 2003 – Q3 – Velm – working capital management

June 2003 – Q4 – Tagna – efficient markets etc

December 2003 – Q1 – Doe – working capital management

December 2003 – Q3 – Basril – Capital rationing

June 2004 – Q1 – Nespa – NPV etc

June 2004 – Q2 – Blin – working capital management

June 2004 – Q4 – Arwin – Gearing

December 2004 – Q3 – Tirwen – rights issues etc

December 2004 – Q5 – Umunat – risk and uncertainty

June 2005 – Q1 (not part (d)) – ARG – NPV / foreign exchange

June 2005 – Q4 – RZP – shareholders ratios

June 2005 – Q5 – TNG – working capital management

December 2005 – Q1 (not part (e)) – BFD – NPV etc

December 2005 – Q4 – AGD – lease and buy

June 2006 – Q5 – Charm – NPV

December 2006 – Q1 – Hendil – sources of finance

June 2007 – Q5 – PNP – working capital management / foreign exchange

John Moffat says

All of those questions are worth doing (if you can find them).

I was assuming that you had already worked through a Revision/Exam Kit and wanted to look at some again before the exam.

First do attempt the recent exams although it has been the same examiner throughout, it is best to be used to his current style of questions.

maat9 says

i have done all above questions. but few questions i have not found. i wanted to ask that. at this situation. i have practiced more than. 30 questions. but i feel that i forget many rules and formulas. because you know 4 days left. i cannot revise the all 30 questionss. i am finding 4 to 5 questions which covers all syllabus. tell me which 4 to 5 past papers covers all f9. iam waiting of your reply

John Moffat says

This is explained in the second paragraph of section 6.1.

The profit or loss on the futures is always calculated as though it is 3 months interest and so it only protects for 3 months.

Since the loan is for 6 months then they way we hedge the risk using futures it to increase the futures that we deal in.

The amount of the futures deal is always the amount of the loan x length of loan/3

(Remember that you cannot be asked calculations on this in F9 as the lecture says, the examples are only there to illustrate how interest rate futures work)

nari says

hello, i do not understand where the 400 came from in the calculation in example 1. Plz explain, thanks.

John Moffat says

The rule is that when we calculate the profit or loss on the futures, we calculate it as though we are calculating 3 months interest (because they are 3 month futures).

So, we divide by 100 to make it a percent. However that would be a yearly interest. We divide by another 4 so that we have 3 months interest (there are 4 lots of 3 months in a year).

I hope that makes sense. However, do appreciate that you cannot be asked calculations on this in Paper F9 the example is only there to show you the idea and so do not worry too much.

In Paper F9 you can only be asked (as part of a question) to explain the idea behind using futures.

nari says

SICHIILA INTEME CHONGA says

zee90 says

John Moffat says

It is difficult to recommend because everybody finds different things easy or hard.

P5 follows on from F5 (but with a lot more writing and fewer calculations). P7 follows on from Paper F8.

Also, have a look at the past two or three real exams for P5 and P7 (on the ACCA website) to get a feel for the level of difficulty.

zee90 says

i have passed f9 58% just becuse of sir john moffat thank you SIR

marcie157 says

Yando says