- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 6. Fixed-Income Bond Valuation: Prices and Yields
- Subject 2. Flat Price, Accrued Interest, and the Full Price
CFA Practice Question
The full price of a bond is defined as ______.
II. the agreed upon price plus accrued interest
III. the agreed upon price less accrued interest
IV. the agreed upon price without accrued interest
I. the clean price plus accrued interest
II. the agreed upon price plus accrued interest
III. the agreed upon price less accrued interest
IV. the agreed upon price without accrued interest
Correct Answer: I and II
User Contributed Comments 4
| User | Comment |
|---|---|
| lijia1 | full price(dirty price) = the amount that the buyer pays the seller the agreed upon price for the bond + accrued interest the agreed upon bond price without accrued interest = clean price so full price also = clean price + accrued interest? |
| Rotigga | Agreed upon price = clean price |
| Khadria | Full price = Clean Price + Accrued Interest and Clean Price = Agreed upon price |
| gazelle | clean price of a security= agreed upon price without accrued interest. |