S2013-Q16

Discussion in 'SP5' started by Nimisha, Apr 24, 2020.

  1. Nimisha

    Nimisha Member

    Hi
    Please tell that why is Accrued interest subtracted to calculate the Total Return Index.
     
  2. Gresham Arnold

    Gresham Arnold ActEd Tutor Staff Member

  3. David Wilmot

    David Wilmot ActEd Tutor Staff Member

    Hi Nimisha,

    The formula for calculating bond index returns was removed from the Core Reading as from October 2013. (Even when it was in the Core Reading it wasn't tested for many years, so it was odd that it came up just before its removal!).

    This formula / calculation is not examinable in the 2020 exams.

    Best wishes

    David
     
    Nimisha likes this.

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