CFA Institute CFA-Level-I Exam - Topic 3 Question 16 Discussion

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

Question #: 16
Topic #: 3

[All CFA-Level-I Questions]

What is the bond's yield to call (YTC)?

A10.05%.

B9.26%.

C10.34%.

D10.55%.

Show Suggested Answer

Suggested Answer: A

by Monte at Apr 30, 2025, 04:31 AM

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Ben

5 months ago

I agree with D, seems like the most accurate choice!

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Beth

5 months ago

Nah, I’m leaning towards B, 9.26%.

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Tom

5 months ago

YTC is usually calculated based on the bond's call date.

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Delmy

6 months ago

I think it's definitely option D, 10.55%!

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Natalie

6 months ago

Wait, are we sure about these numbers? Seems off to me.

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Blossom

6 months ago

I think the answer is D, but I’m second-guessing myself. I remember practicing with different yields, and this one feels tricky!

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Kerry

6 months ago

I vaguely recall that the yield to call can be higher than the yield to maturity if the bond is called early. I’m leaning towards option C, but I’m not confident.

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Stacey

7 months ago

I’m not entirely sure how to calculate it, but I think it involves the bond's call price and interest payments. I feel like I’ve seen a question like this before.

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Erick

7 months ago

I remember YTC is similar to YTM but focuses on the call date instead. I think it might be around 10% based on what I practiced.

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Ligia

7 months ago

Alright, time to put my bond math skills to the test. Let me tackle this step-by-step.

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Kerrie

7 months ago

This seems straightforward. I'm pretty confident I can solve this by applying the standard YTC formula.

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Daron

7 months ago

Yield to call? I'm a bit unsure about that concept. I'll need to refresh my memory on how to compute it.

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Santos

7 months ago

Okay, I think I know how to approach this. Let me review the bond details and work through the formula.

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Ramonita

8 months ago

Hmm, this looks like a tricky one. I'll need to think through the yield to call calculation carefully.

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Mari

11 months ago

Wait, what's a bond's yield to call? I thought this was an exam on baking cupcakes!

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Delmy

11 months ago

C. 10.34% is the way to go. I've seen this kind of question before, and that's usually the answer.

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Dottie

10 months ago

C. 10.34% is the way to go. I've seen this kind of question before, and that's usually the answer.

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Catalina

10 months ago

D) 10.55%.

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Celestina

10 months ago

I remember seeing this before, C) 10.34% is probably correct.

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Malcolm

10 months ago

C) 10.34%.

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Elena

10 months ago

I'm not sure, but C) 10.34% sounds familiar.

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Jacquelyne

10 months ago

B) 9.26%.

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Laquanda

11 months ago

A) 10.05%.

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Billi

11 months ago

I think so too, let's go with C) 10.34%.

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Luisa

11 months ago

I agree, C) 10.34% seems like the right choice.

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Leontine

11 months ago

I'm not sure, but I think it might be D) 10.55%.

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Carmela

11 months ago

I believe it's C) 10.34%.

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Susana

12 months ago

I think it's B) 9.26%.

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Lizbeth

12 months ago

Hmm, I'm not sure. They all look pretty close. Maybe I should just guess and hope for the best!

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Jess

11 months ago

B) 9.26%.

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Dick

11 months ago

A) 10.05%.

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Leontine

12 months ago

What is the bond's yield to call (YTC)?

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Olene

12 months ago

D. 10.55% seems right. That's the highest yield, so it must be the yield to call.

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Dong

11 months ago

D) 10.55% is the highest yield, so it must be the yield to call.

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Eleonore

11 months ago

B) 9.26% is lower than 10.55%, so it's not the yield to call.

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Lisha

12 months ago

A) 10.05% is too low, it can't be the yield to call.

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Dorthy

1 year ago

I think the answer is B. 9.26%. It just makes the most sense to me.

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Dorothy

11 months ago

I calculated it and got D) 10.55% as the answer.

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Luis

12 months ago

I think it might be C) 10.34%, but I'm not entirely sure.

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Evan

12 months ago

I agree with you, B) 9.26% seems like the correct answer.

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