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

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Jamey

3 months ago

Wait, is this a trick question? What if the answer is actually 'All of the above'? I'm going to overthink this, aren't I?

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Chaya

3 months ago

Alright, time to channel my inner bond wizard. This is going to be a piece of cake... or a hot mess. We'll see!

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Angelica

2 months ago

I believe it's C) 0.61%

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Wilford

2 months ago

I'm leaning towards B) 0.43%

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Jeanice

2 months ago

I think the answer is A) 1.64%

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Linsey

4 months ago

Ugh, bond math. Why can't they just ask something simple, like 'What's the capital of Australia?'

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Nana

2 months ago

I agree, it seems like the correct answer based on the information provided.

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Juliann

3 months ago

I think the answer might be A) 1.64%.

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Ethan

3 months ago

I know, bond math can be tricky sometimes.

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Lashawn

4 months ago

Okay, I think I've got it. Using the benchmark YTMs, I can interpolate the spread. This is a good way to test our understanding of bond pricing and yields.

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