Interest Rate Risk Management - ACCA Financial Management (FM)

[@AriaZalar]

Thank you! Seeing the numbers behind the theory helps to make it clearer.

[@loremipsum752]

Thank you for this lecture and the whole content your website offers. It is really useful to study the topic for my university classes.

[@opentuition]

Thank you for your comment - I am really pleased that you are finding our lectures useful.

[@yuema8306]

Thank you! This lecture is really clear and very helpful

[@dilnozabobomurodova9710]

thank you so much sir, these videos are really useful and understandable.

[@michaelh2673]

Thanks

[@qatari5898700]

Thank you very much, very helpful. Can I make donation to your website?

[@opentuition]

Thank you for your comment :-) If you wish to make a donation then that would be very welcome. If you visit our free website you will find a donation 'button' (and lots more free resources for Paper FM).

[@felixmwalyego5149]

Thanks for the good lecture

[@rebeccamensah3874]

At the point of swapping why X is L+3% and yis 12% shouldn't it be L+6.5% and y be 10%

[@ahmadnomanalnoor5986]

why do the spot and future rates move in the opposite directions?

[@opentuition]

Because the futures prices are 100 minus the interest rate. So a higher interest rate means a lower futures price. I do explain this in the lecture :-) (But do appreciate that you cannot be asked for calculations on interest rate risk in Paper FM - that comes in Paper AFM!)

[@ahmadnomanalnoor5986]

@@opentuition
Oh sorry, i meant to ask this question in the foreign exchange risk lecture. Why do the spot and futures exchange rates move in the opposite directions?

[@opentuition]

@@ahmadnomanalnoor5986 They don't!! For foreign exchange the futures prices and the spot rates move in the same direction.