AIWMI Exam CCRA-L2 Topic 1 Question 96 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 96
Topic #: 1

The following information pertains to bonds:

Further following information is available about a particular bond 'Bond F'

There is a 10.25% risky bond with a maturity of 2.25% year(s) its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs.

Compute interpolated spread for Bond F based on the information provided in the vignette:

A1.64%

B0.43%

C0.61%

D1.46%

Show Suggested Answer

Suggested Answer: D

by Stevie at Sep 08, 2024, 02:31 PM

Limited Time Offer

25%

Off

Get Premium CCRA-L2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Shonda

8 days ago

Yes, I think we need to use the formula for interpolated spread to find the correct answer.

upvoted 0 times

...

Darrel

9 days ago

I agree, but I believe we can use the benchmark YTMs to calculate it.

upvoted 0 times

...

Shonda

15 days ago

I think the question about computing interpolated spread for Bond F is tricky.

upvoted 0 times

...