- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 31. Credit Analysis Models
- Subject 4. Valuing Risky Bonds in an Arbitrage-Free Framework
CFA Practice Question
After some number crunching exercises you have got the VND of 102.80 per 100 of par value for a 5-year, 3.80% annual payment corporate bond. The overall CVA is 4.28. The fair value of the bond is therefore:
B. 98.52
C. need more information.
A. 95.72
B. 98.52
C. need more information.
Correct Answer: B
The fair value of the bond is VND - CVA = 102.8 - 4.28 = 98.52
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