- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 8. Yield and Yield Spread Measures for Floating-Rate Instruments
- Subject 2. Yield Measures for Money Market Instruments
CFA Practice Question
Consider a 90-day repo with a face value 100 and a quoted add-on rate of 4.5% for an assumed 360-day year. What is the redemption amount?
Correct Answer: 101.125
FV = 100 + 100 x 90/360 x 0.045 = 101.125
User Contributed Comments 1
| User | Comment |
|---|---|
| zainabcmu | Redemption value is FV |