CIMAPRA17-BA1-1 Exam - 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

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Joana

5 months ago

I agree, something seems off with those numbers!

upvoted 0 times

...

Barbra

5 months ago

Wait, how does that even add up?

upvoted 0 times

...

Bernardine

5 months ago

I think it's actually higher than that!

upvoted 0 times

...

Anglea

5 months ago

That's a running yield of 2.34%? Sounds low for bonds.

upvoted 0 times

...

Roslyn

6 months ago

The total market value is $2400 for 80 bonds.

upvoted 0 times

...

Brynn

6 months ago

I think the running yield is supposed to be lower than the coupon rate, but I'm not confident about the exact calculation.

upvoted 0 times

...

Nikita

6 months ago

I feel like I might be mixing up running yield with current yield. Is it just the interest rate divided by the market price?

upvoted 0 times

...

Juliann

6 months ago

This seems similar to a practice question we did on bond yields. I think we need to divide the interest by the market value.

upvoted 0 times

...

Stephaine

6 months ago

I remember we calculated running yield in class, but I'm not entirely sure how to apply it here.

upvoted 0 times

...

Darrel

6 months ago

Okay, let's see. I know thick provisioning is about pre-allocating storage space, so that's probably related to the first two options. I'll need to double-check the details though.

upvoted 0 times

...

Xochitl

6 months ago

I remember something about HSAs picking up quickly after their introduction, but I'm not entirely sure about the exact numbers.

upvoted 0 times

...

Hailey

6 months ago

I vaguely remember discussing the differences between CCMA and CCMS in class, but I'm not sure which one was using AD-LDS and Access.

upvoted 0 times

...

Rikki

7 months ago

This question is testing our understanding of the common connectivity issues between the Blue Prism components. I'll carefully consider each option and select the three that seem most relevant.

upvoted 0 times

...

Ming

11 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%.

upvoted 0 times

...

Shenika

11 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.

upvoted 0 times

Maricela

10 months ago

I agree with Lanie, C) 8.9% seems correct

upvoted 0 times

...

Jonelle

10 months ago

I'm leaning towards B) 8.86%

upvoted 0 times

...

Flo

10 months ago

I think it's A) 8.87%

upvoted 0 times

...

Lanie

11 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%.

upvoted 0 times

Glenna

10 months ago

Great job! The running yield is 8.9%.

upvoted 0 times

...

Edmond

10 months ago

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

upvoted 0 times

...

Cherelle

10 months ago

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

upvoted 0 times

...

Douglass

12 months ago

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

upvoted 0 times

...

Mica

12 months ago

I disagree, I calculated it to be 8.86%.

upvoted 0 times

...

Tequila

12 months ago

I think the running yield is 8.87%.

upvoted 0 times

...

Pilar

12 months ago

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

upvoted 0 times

...

Emiko

12 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.

upvoted 0 times