CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 64 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 64
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Calculate the yield to an investor available from the following commercial bill:

Face value $100,000

Market price $98,500

Maturity 90 days time

A1.5%

B4.5%

C6.1%

D$1,500

Show Suggested Answer

Suggested Answer: B

by Dominque at Jan 07, 2023, 02:38 PM

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Colton

Wait, is this a trick question? I better review the formula for yield calculation to be sure.

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Beula

9 days ago

Haha, I bet the answer is not 'D) $1,500' - that would be way too obvious!

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Kristel

13 days ago

Hmm, let me double-check my math. Option C seems right, but I'll keep an eye out for any trick questions.

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Regenia

18 days ago

This is a straightforward yield calculation, I'll go with option C.

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Kristel

23 days ago

I agree with Shenika, the yield should be 4.5% because the market price is lower than the face value

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Shenika

26 days ago

I disagree, I believe the correct answer is B) 4.5%

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Dahlia

27 days ago

I think the answer is A) 1.5%

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