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ICMA FMFQ Exam - Topic 4 Question 26 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 26
Topic #: 4
[All FMFQ Questions]

An EUR-denominated Eurobond matures on 15 January 2017 and pays an annual coupon of 5% on an act/act basis. The bond is trading at a yield to maturity of 6% for settlement on 10 March 2015. Which of the following ststements is true of its clean price?

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Suggested Answer: B

by Colette at May 05, 2022, 08:43 PM

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Douglass
6 months ago
Wait, why would it be above 100? That seems off.
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Glennis
6 months ago
Agree, it's definitely below 100.
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Frederica
6 months ago
I think it might be above 100, not sure though.
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Kimi
7 months ago
Definitely below 100!
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Celestine
7 months ago
The bond has a higher yield than the coupon rate.
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Portia
7 months ago
I'm not entirely sure, but I feel like the clean price should be above 100 if the coupon rate was higher than the yield.
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Tiffiny
7 months ago
I think I practiced a similar question where the bond was trading at a higher yield, and it also resulted in a price below par.
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Alysa
7 months ago
I remember that when the yield to maturity is higher than the coupon rate, the bond price tends to be below 100.
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Hayley
7 months ago
I wonder if we need more details about the accrued interest to determine the clean price accurately.
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Taryn
7 months ago
Okay, let me think this through. The question is asking us to ensure the name is displayed in all uppercase letters, so I'm leaning towards option A as well. Modifying the name variable directly seems like the simplest solution.
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Ilona
7 months ago
Okay, I think I've got this. Option B looks like the right way to switch the context to the frame with the given ID. I'll double-check the syntax, but I'm feeling confident about this one.
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Lorita
7 months ago
Hmm, let me take a closer look at this kubeconfig file. I think I can figure out the number of clusters and which one uses username/password authentication.
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Kathrine
7 months ago
C) c is versatile, but I am not sure it's complete.
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