- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 42. Fixed-Income Securities: Defining Elements
- Subject 4. Structure of a Bond's Cash Flows
CFA Practice Question
A plain vanilla bond has a maturity of 10 years, a par value of $1,000, and a coupon rate of 6%. Coupon payments are made annually. The bond is issued at par. The principal repayment at the end of the second year is closest to ______.
A. $0
B. $60
C. $100
Explanation: There is no principal repayment until the maturity date.
User Contributed Comments 1
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| sals1230 | GOT'EM! lol |