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AIWMI Exam CCRA-L2 Topic 1 Question 96 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 96
Topic #: 1
[All CCRA-L2 Questions]

The following information pertains to bonds:

Further following information is available about a particular bond 'Bond F'

There is a 10.25% risky bond with a maturity of 2.25% year(s) its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs.

Compute interpolated spread for Bond F based on the information provided in the vignette:

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Suggested Answer: D

by Stevie at Sep 08, 2024, 02:31 PM

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Lashawn
2 days ago
Okay, I think I've got it. Using the benchmark YTMs, I can interpolate the spread. This is a good way to test our understanding of bond pricing and yields.
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Nieves
5 days ago
Hmm, let's think this through. The bond has a YTM of 9.22%, and the benchmark YTMs are provided. I'll need to use those to interpolate the spread.
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Shonda
17 days ago
Yes, I think we need to use the formula for interpolated spread to find the correct answer.
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Darrel
18 days ago
I agree, but I believe we can use the benchmark YTMs to calculate it.
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Shonda
24 days ago
I think the question about computing interpolated spread for Bond F is tricky.
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