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Basic Question 3 of 6

If you invested in a security promising to pay 3.75% compounded semi-annually, what would your total value per dollar invested be after 10 years?

A. 37.5
B. 1.44504
C. 1.44995
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User Contributed Comments 7

User Comment
gaur n = 20, i= 3.75/2=1.875, pv = (-) 100, PMT=0, FV?? ---> 144.995
zzhumanov Divide by 100 to find per dollar value
julescruis thanks guys good recap
jwebbs damn i keep forgetting its quoted as yearly so i forget to /2.
moneyguy Exactly like gaur, but:

pv = -1
cpt FV = 1.4499 (very nice :)
kingirm Why pmt=0 ?
MathLoser EAR
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Learning Outcome Statements

calculate and interpret the present value(PV) of fixed-income and equity instruments based on expected future cash flows

calculate and interpret the implied return of fixed-income instruments and required return and implied growth of equity instruments given the present value (PV) and cash flows

CFA® 2024 Level I Curriculum, Volume 1, Module 2.