Question

Calculate the total amount repaid from debt tranche 4. Accelerated repayments are made in order of seniority.

Assumptions	Year 0	Year 1
Debt tranche 1 mandatory repayment		(900.0)
Debt tranche 2 mandatory repayment		(450.0)
Debt tranche 3 mandatory repayment		(100.0)
Debt tranche 4 mandatory repayment		(50.0)
Cash available for mandatory and accelerated repayments		3,050.0
Debt tranche 1 beginning amount		1,000.0
Debt tranche 2 beginning amount		1,000.0
Debt tranche 3 beginning amount		1,000.0
Debt tranche 4 beginning amount		1,000.0

Select one:

0.0

(50.0)

(1,000.0)

(100.0)

Answer 1

Cash available = 3050

Total Mandatory repayment (900+450+100+50) =(1500)

Balance =1550

Remaining amount under debt tranche to be settled

Debt Tranche	Amt at the beginning	Mandatory Repayment made	Balance to be settled	Cash available after settlement of the balance
1	1000	(900)	100	=1550-100 =1450 Cash available is 1,450
2	1000	(450)	550	=1450-550 =900 Cash available is 900
3	1000	(100)	900	=900-900 =0 Cash available is 0
4	1000	(50)	950	No cash is available to settle the balance amount of 950.

Therefore Total amount repaid from debt tranche 4 is 50.

So the answer is b (50.0)