- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 44. Introduction to Fixed-Income Valuation
- Subject 6. Yield Measures for Floating-Rate Notes and Money Market Instruments
CFA Practice Question
Consider a 90-day repo with a face value of 100 and a quoted add-on rate of 4.5% for an assumed 360-day year. What is the purchase price?
A. 100
B. 101.125
C. 101.142
Explanation: The purchase price is the face value. No calculation is needed.
User Contributed Comments 1
| User | Comment |
|---|---|
| levani307 | Can anyone explain why? |