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CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 27 Discussion
Actual exam question for
CIMA's
CIMAPRA19-F02-1 exam
Question #: 27
Topic #: 1
[All CIMAPRA19-F02-1 Questions]
Topic #: 1
RS has issued an instrument with a nominal value of $1 million, at a discount of 2.5%, and a coupon rate of 6%. The terms of the issue are that the instrument must eitherbe redeemed at par, at the option of the holder, in three years' time, or alternativelyconverted into equity shares in RS.
The characteristics of this instrument taken as a whole indicates that it would be classifed as which of the following?
Suggested Answer:
A
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