CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 64 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 64
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Calculate the yield to an investor available from the following commercial bill:

Face value $100,000

Market price $98,500

Maturity 90 days time

A1.5%

B4.5%

C6.1%

D$1,500

Show Suggested Answer

Suggested Answer: B

by Dominque at Jan 07, 2023, 02:38 PM

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Colton

2 months ago

Wait, is this a trick question? I better review the formula for yield calculation to be sure.

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Desirae

12 days ago

So, did you figure out the yield for the commercial bill?

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Moon

18 days ago

The yield to an investor is calculated using the formula: (Face Value - Market Price) / Market Price * (365 / Days to Maturity)

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Rory

26 days ago

I think you just need to use the formula for yield calculation to find the answer.

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Beula

2 months ago

Haha, I bet the answer is not 'D) $1,500' - that would be way too obvious!

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Maia

Cecil: Let's see who's right!

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Roselle

1 days ago

User 3: I'm going with C) 6.1%

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Cecil

2 days ago

User 2: No way, I believe it's B) 4.5%

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Queenie

4 days ago

User 1: I think the answer is A) 1.5%

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Queen

6 days ago

No, I believe it's B) 4.5%

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Kallie

8 days ago

B) 4.5%

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Katy

14 days ago

I think it's A) 1.5%

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Shonda

20 days ago

A) 1.5%

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Kristel

2 months ago

Hmm, let me double-check my math. Option C seems right, but I'll keep an eye out for any trick questions.

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Desirae

1 months ago

I agree, let's go with that

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Van

1 months ago

I think it's option C, 6.1%

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Regenia

2 months ago

This is a straightforward yield calculation, I'll go with option C.

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Alex

19 days ago

The market price is lower than the face value, so the yield should be higher.

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Leonardo

1 months ago

I would go with option C as well.

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Kallie

1 months ago

I agree, the yield calculation seems simple.

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Irma

2 months ago

I think option C is the correct answer.

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Kristel

3 months ago

I agree with Shenika, the yield should be 4.5% because the market price is lower than the face value

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Shenika

3 months ago

I disagree, I believe the correct answer is B) 4.5%

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Dahlia

3 months ago

I think the answer is A) 1.5%

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