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CFA Institute Exam CFA-Level-I Topic 1 Question 11 Discussion

Actual exam question for CFA Institute's CFA-Level-I exam
Question #: 11
Topic #: 1
[All CFA-Level-I Questions]

An investor buys a 25-year, 10 percent annual pay bond for $900 planning to sell the bond in 5 years when he estimates yields will be 9 percent. What is the estimate of the future price of this bond?

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Suggested Answer: D

Contribute your Thoughts:

Jina
1 months ago
Woohoo, time to show off my bond pricing skills! I'm guessing C) $1,122. Let's see if I'm as smart as I think I am!
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Jeanice
1 months ago
I'm not so sure, I would go with D) $1,091 instead.
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Cecilia
1 months ago
I think you're right, C) $1,122 sounds about right.
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Felix
2 months ago
A) $964? What is this, a discount bond? Nah, I'm going with the big bucks, C) $1,122.
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Yasuko
1 months ago
I'm going with C) $1,122, aiming for the big bucks.
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Deeanna
1 months ago
I think it's A) $964, it's a discount bond.
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Lavera
2 months ago
B) $1,000? Really? That's too easy. I bet the answer's gonna be something more complex, like C) $1,122.
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Cory
2 months ago
I agree with Zona, the future price should be $1,000 based on the decrease in yield.
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Cyril
2 months ago
D) $1,091 sounds about right to me. Time to break out the financial calculator and get this right!
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Selma
1 months ago
C) $1,122.
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Troy
1 months ago
B) $1,000.
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Bernadine
1 months ago
A) $964.
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Zona
2 months ago
I disagree, I believe the future price will be $1,000 because the yield is decreasing.
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Carmen
2 months ago
Hmm, let's see. I'd say the answer is C) $1,122. Gotta love those compound interest calculations!
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Tanesha
2 months ago
Yes, it's all about those calculations. $1,122 sounds like the right estimate.
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Quentin
2 months ago
I agree, compound interest can really boost the future price of a bond.
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Latrice
2 months ago
I think the answer is C) $1,122. The bond price will increase with lower yields.
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Glendora
2 months ago
I think the future price of the bond will be $964.
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