CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

A bond has a coupon rate of 6% and a yield to maturity of 6.25%. Which of the following prices, as a percentage of par, is a likely candidate for the bond's market price?
A. 102.35%
B. 98.76%
C. 101.94%
Explanation: When the yield to maturity exceeds the coupon rate a bond sells at a discount rate from its par or face value. Answer B is the only candidate for the bond's market price since it is less than par: i.e., 100%.

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