Hi, is April 2021 Q4 parts (i) and (iii) based on old core reading material for SA7 or was it written on the assumption that students should remember the process from previous studies? I remember bootlegging being outlined in SP5, but not in SA7. A lot of the detail around the calculating the geometric difference in returns, I would not have been able to come up with!
The material in these parts was just out of the blue for everyone. There has not been core reading on the material in SA6 or SA7 in the past. However, in the question's defence, part (iii) of the question is about converting semi-annual compounding interest rates into annual effective, which most people have done in SP5 on many occasions. But knowing exactly what the examiner wanted was not straight forward. Part (i) was about bootstrapping (again SP5) and had to be tweaked to fit the specifics of the question - but a general description of bootstrapping would have scored well.
