- CFA Exams
- CFA Exam: Level II 2021
- Study Session 13. Fixed Income (2)
- Reading 35. Credit Analysis Models
- Subject 1. Modeling credit risk and the credit valuation adjustment
CFA Practice Question
The credit valuation adjustment for a corporate bond is calculated to be $2.32. If this bond were default-free its price would be $103.42. What is the fair value of this bond?
B. $105.74
C. Not enough information
A. $101.10
B. $105.74
C. Not enough information
Correct Answer: A
$103.42 - $2.32 = $101.10
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