ICMA Exam FMFQ Topic 6 Question 64 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 64
Topic #: 6

[All FMFQ Questions]

The dirty price of a bond is which of the following:

AThe same as the clean price

BClean price + interest of the period from the last coupon payment date

CClean price + interest of the period from settlement until the next coupon payment date

DClean price + trading commissions

Show Suggested Answer

Suggested Answer: B

by Moon at Aug 25, 2024, 09:45 AM

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Lashawna

3 days ago

I'm pretty sure the dirty price includes the accrued interest since the last coupon payment, so I think the answer is C.

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Evan

6 days ago

Hmm, I'm a bit confused on the difference between the processes in this level. I'll need to review my notes to make sure I understand them properly.

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Janey

1 years ago

Bond pricing, huh? I'd rather be pricing my fantasy football lineup. But I digress, C is the way to go.

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Colette

12 months ago

No, it's definitely C. Trust me.

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Maurine

12 months ago

I think it's B, actually.

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Fanny

12 months ago

I agree, C is the correct answer.

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Jolene

1 years ago

I think it's the clean price plus trading commissions, as those are part of the total cost of buying the bond.

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Yuki

1 years ago

I agree with Glory, the dirty price includes the interest for the period until the next coupon payment.

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Glory

1 years ago

No, I believe it's the clean price plus interest from settlement until the next coupon payment date.

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Aide

1 years ago

I think the dirty price of a bond is the same as the clean price.

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Myra

1 years ago

Dirty price? Sounds like something my dog would roll in. Anyway, I'm going with C. Clean price plus that interest thingy.

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Diane

1 years ago

Ugh, I always get these bond pricing questions mixed up. Let me think...I think C is the right one, but I'm not totally sure.

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Eric

12 months ago

Oh, I see. Thanks for clarifying that, I always get confused with bond pricing too.

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Sylvie

12 months ago

Actually, it's B. The dirty price is the clean price plus the interest of the period from the last coupon payment date.

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Sheldon

1 years ago

I agree, C seems to be the most logical choice for the dirty price calculation.

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Stefania

1 years ago

I think C is correct, it includes the interest from settlement until the next coupon payment date.

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Shanda

1 years ago

Clearly the dirty price is the clean price plus the accrued interest until the next coupon payment. C is the correct answer.

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Tamesha

1 years ago

So, the answer is C then. Clean price + interest of the period from settlement until the next coupon payment date.

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Margarita

1 years ago

Yes, that's correct. It's the clean price plus the interest from settlement to the next coupon payment date.

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Karina

1 years ago

I think the dirty price includes the accrued interest until the next coupon payment.

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