CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 71 Discussion

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

Question #: 71
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Brian has 80 bonds with a total market value of 2400. The interest rate on these bonds is 2.34%.

Using these figures, which of the following is the running yield of each of Brian's bonds?

A8.87%

B8.86%

C8.9%

D8.83%

Show Suggested Answer

Suggested Answer: C

by Jeanice at Jul 03, 2023, 10:14 PM

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Ming

1 months ago

Dude, this is so easy! You just take the interest rate and divide it by the market value per bond. I can't believe people are actually thinking about this. It's gotta be C) 8.9%.

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Shenika

1 months ago

Ooh, this is a good one. I'm gonna have to break out my calculator for this. Okay, let's see... Yep, I think Lanie's got it right, C) 8.9% is the way to go.

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Maricela

10 days ago

I agree with Lanie, C) 8.9% seems correct

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Jonelle

14 days ago

I'm leaning towards B) 8.86%

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Flo

21 days ago

I think it's A) 8.87%

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Lanie

2 months ago

Hold up, I think I got this! It's C) 8.9%, right? The interest rate is 2.34% and the market value is 2400, so the running yield should be 2.34/2400 = 0.0889 or 8.9%.

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Glenna

7 days ago

Great job! The running yield is 8.9%.

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Edmond

11 days ago

That's correct! It's C) 8.9%.

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Cherelle

16 days ago

Yes, you got it! The running yield is indeed 8.9%.

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Douglass

2 months ago

I believe it's 8.9% because the total market value and interest rate need to be considered together.

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Mica

2 months ago

I disagree, I calculated it to be 8.86%.

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Tequila

2 months ago

I think the running yield is 8.87%.

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Pilar

2 months ago

I calculated it and got 8.87%, so I think the answer is A) 8.87%.

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Emiko

2 months ago

Hmm, this looks tricky. Let me see, running yield is the annual interest divided by the market value, so I'll need to do the calculations to figure this out.

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