CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Consider a bond that pays 10% semi-annually and has six years to maturity. The market requires an interest rate of 12% on bonds of this risk level. What is this bond's price?
A. $91.62
B. $91.77
C. $95.08
Explanation: N=12, I/Y=6, PMT=5, FV=100, PV=?=91.62

User Contributed Comments 4

User Comment
jasminameron The interests are compounded semiannualy, aren't they?
kellyyang yep!
bidisha Why is pmt 5 if it says pmt is made semi anually. Shouldn't it be 10
sevywonder @bidisha 10%/2 = 5
You need to log in first to add your comment.