CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 71 Discussion

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

Question #: 71
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Brian has 80 bonds with a total market value of 2400. The interest rate on these bonds is 2.34%.

Using these figures, which of the following is the running yield of each of Brian's bonds?

A8.87%

B8.86%

C8.9%

D8.83%

Show Suggested Answer

Suggested Answer: C

by Jeanice at Jul 03, 2023, 10:14 PM

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Shenika

6 hours ago

Ooh, this is a good one. I'm gonna have to break out my calculator for this. Okay, let's see... Yep, I think Lanie's got it right, C) 8.9% is the way to go.

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Lanie

9 days ago

Hold up, I think I got this! It's C) 8.9%, right? The interest rate is 2.34% and the market value is 2400, so the running yield should be 2.34/2400 = 0.0889 or 8.9%.

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Douglass

19 days ago

I believe it's 8.9% because the total market value and interest rate need to be considered together.

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Mica

20 days ago

I disagree, I calculated it to be 8.86%.

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Tequila

21 days ago

I think the running yield is 8.87%.

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Pilar

22 days ago

I calculated it and got 8.87%, so I think the answer is A) 8.87%.

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Emiko

23 days ago

Hmm, this looks tricky. Let me see, running yield is the annual interest divided by the market value, so I'll need to do the calculations to figure this out.

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