Doubt on a problem on intercorporate investments

[Raghavsrini]

Can someone explain how to do this??

[question and answer removed by admin]

Thanks in advance

[onlysimon]

ignore it. CFAI would never say you bought a bond for XXX including the accrued interest… if they do I’ll be screwing up the paper in the hall.

basically you have 5 months acrrued interest to account for ( I think it’s 5000) which means you spent 112,000 - 5000 = 107,000 for the bonds.

so 2. is right and 5. is right. so B.

(FI reading is really bad, CFAI should get fabozzi to do it)

[Raghavsrini]

@onlysimon

ignore it. CFAI would never say you bought a bond for XXX including the accrued interest… if they do I’ll be screwing up the paper in the hall.

basically you have 5 months acrrued interest to account for ( I think it’s 5000) which means you spent 112,000 - 5000 = 107,000 for the bonds.

so 2. is right and 5. is right. so B.

(FI reading is really bad, CFAI should get fabozzi to do it)

great, finally got it!! thanks a lot… and thanks for the tip on ignoring such questions!!