CFA Practice Question

There are 252 practice questions for this study session.

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?

A. $101.10
B. $105.74
C. Not enough information
Correct Answer: A

$103.42 - $2.32 = $101.10

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