CIMAPRA19-F03-1 Exam - Topic 6 Question 41 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 41
Topic #: 6

Acompanyhas 8% convertible bonds in issue. The bonds are convertible in 3 years time at a ratio of 20 ordinary shares per $100 nominal value bond.

Each share:

* has a current market value of $5.60

* is expected to grow at 5% each year

What is the expected conversion valueof each$100nominal value bondin 3 years' time?

A$129.6

B$117.6

C$100.0

D$112.0

Show Suggested Answer

Suggested Answer: A

by Reena at May 07, 2022, 02:50 PM

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Adelina

9 months ago

Definitely leaning towards option B, $117.6 sounds right!

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Marge

9 months ago

I think the expected conversion value is around $112.

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Sarina

9 months ago

Wait, how can we be sure the shares will grow like that?

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Tamie

9 months ago

So, if shares grow at 5%, that’s a solid return!

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Kip

9 months ago

The conversion ratio is 20 shares for a $100 bond.

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Deonna

10 months ago

I'm pretty sure this is a false positive alert. The question states there's no active attack, so the IDS must have triggered an alarm incorrectly.

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Reyes

10 months ago

Wait, I'm confused. Is a higher combined ratio better or worse for the insurer? I need to review my notes on this insurance terminology to make sure I have it straight before answering.

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Annette

10 months ago

This question covers a lot of ground. I'll need to review my notes on DRP to make sure I'm considering all the important factors.

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Dona

10 months ago

This one seems pretty straightforward. If the Facebook app isn't installed, the examiner would likely find the artifacts in the device's web browser cache or local storage.

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