CFA Institute CFA-Level-I Exam - Topic 1 Question 24 Discussion

Actual exam question for CFA Institute's CFA-Level-I exam

Question #: 24
Topic #: 1

[All CFA-Level-I Questions]

What is the bond's yield to maturity (YTM)?

A9.26%.

B10.34%.

C10.05%.

D10.55%.

Show Suggested Answer

Suggested Answer: B

by Kanisha at Nov 23, 2025, 11:16 AM

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Domonique

1 month ago

C) 10.05% makes sense. Good balance.

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France

1 month ago

YTM is tricky. I’d go with B) too.

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Georgiana

2 months ago

D) 10.55% could be right. Higher yield, more attractive.

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Elena

2 months ago

A) 9.26% looks low. Not confident in that.

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Ellsworth

2 months ago

I'm leaning towards C) 10.05%. Feels safer.

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Cassie

2 months ago

I think it's B) 10.34%. Seems reasonable.

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Ronny

2 months ago

YTM is the total return anticipated on a bond if held until it matures.

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Dianne

3 months ago

Wait, how can it be D) 10.55%? That seems way too high!

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Azalee

3 months ago

C) 10.05% seems reasonable, but I'm not convinced.

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Graham

3 months ago

I think A) 9.26% is too low for current rates.

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Mose

3 months ago

I'm pretty sure it's B) 10.34%.

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Glendora

4 months ago

The bond must be in default if the YTM is 10.55%! D) is a joke.

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Rodrigo

4 months ago

Hmm, I'm going with C) 10.05% - it's the most realistic YTM.

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Emogene

4 months ago

D) 10.55% is way too high, the YTM can't be that high.

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Latrice

4 months ago

I recall that YTM is often higher than the coupon rate if the bond is selling at a discount. I’m thinking it might be around 10.05% or 10.34%.

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Samuel

4 months ago

Honestly, I’m a bit confused about how to calculate YTM directly from the options given. I feel like I need more practice with these types of questions.

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Dino

4 months ago

I think I practiced a question similar to this where we had to find the YTM using a formula. I might lean towards option B, but I could be wrong.

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Pilar

5 months ago

I've got this! YTM is all about finding the discount rate that makes the bond's price equal to the present value of its future payments. Time to crunch some numbers.

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Cora

5 months ago

Ugh, YTM questions are the worst. I'm just going to read through the options carefully and see if one jumps out at me as the correct answer.

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Thurman

5 months ago

I remember YTM calculations involve the bond's current price, coupon payments, and maturity, but I'm not sure how to apply it here.

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Muriel

5 months ago

A) 9.26% seems a bit too low for a bond's YTM.

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Daniela

6 months ago

B) 10.34% is the only reasonable option here.

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Shanice

6 months ago

C) 10.05% looks like the correct answer to me.

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Angella

6 months ago

Okay, let me think this through step-by-step. I'll need to find the present value of the bond's future cash flows and then solve for the discount rate that makes the PV equal to the bond's price.

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