The effective rate of interest is simply the IRR. (yield to maturity) It is the percentage with which when discounting the fixed amounts up to the redemption (including income and expenditure) would result in 0 with the time value of money. It's stupid that they don't explain this during FR and SBR, but having passed FM and AFM I've come to understand that.
thanks so much, i honestly wish there could be a video for every topic in ACCA like this
So glad that you liked this video - your comment means a lot to me
This was very explanatory and detailed. I feel equipped to tackle questions just from this video. Thank you, Mr. Tom; thank you ACCA.
thank you sir .....i too.....honestly wish there could be a video for every topic in ACCA like this
Excellent explanation. Hugely helpful.
Fantastic explanation. Thank u 😃
great explanation there, thank you so much.
Great explanation, thanks.
very helpful
Thanks
Hi, what will be done with 867 Equity element after 2 years?
plz explain effective rate of interest?
The effective rate of interest is simply the IRR. (yield to maturity) It is the percentage with which when discounting the fixed amounts up to the redemption (including income and expenditure) would result in 0 with the time value of money.
It's stupid that they don't explain this during FR and SBR, but having passed FM and AFM I've come to understand that.