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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Ming

13 days ago

Dude, this is so easy! You just take the interest rate and divide it by the market value per bond. I can't believe people are actually thinking about this. It's gotta be C) 8.9%.

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Shenika

17 days 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

26 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

1 months 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

1 months ago

I disagree, I calculated it to be 8.86%.

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Tequila

1 months ago

I think the running yield is 8.87%.

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Pilar

1 months ago

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

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Emiko

1 months 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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