S
ssaini
Member
hi,
I was looking over the april 2010 exam paper and was unsure on Q2 (ii)
the question is asking for the annual effective money yield and the solution has taken the equation of values using the calculations as in part (i) of the question, but the cashflows in part (i) have been adjusted for inflation therefore does this not make it the real yield as apposed to the money yield?
thanks for your help in advance
kind regards
Salil
I was looking over the april 2010 exam paper and was unsure on Q2 (ii)
the question is asking for the annual effective money yield and the solution has taken the equation of values using the calculations as in part (i) of the question, but the cashflows in part (i) have been adjusted for inflation therefore does this not make it the real yield as apposed to the money yield?
thanks for your help in advance
kind regards
Salil