AIWMI Exam CCRA-L2 Topic 1 Question 99 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 99
Topic #: 1

A coupon bond is trading at 110% of the USD 1000 par value. If the last interest payment was made one month ago and the coupon rate is 12%, the accrued interest on this bond is_______

A110

B100

C120

D10

Show Suggested Answer

Suggested Answer: D

by Ellsworth at Sep 19, 2024, 01:55 PM

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Olive

6 days ago

I'm totally acing this exam, and I've got the answer right here. D) 10 is the way to go, no doubt about it. Unless, of course, the bond is made of chocolate. Then the answer would be 'eat the whole thing'.

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Aileen

14 days ago

This is a tricky one! I'm going to go with C) 120, just to keep things interesting. Who needs accurate answers when you can have fun, right?

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Blondell

1 days ago

I think the answer is A) 110.

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Trina

15 days ago

Ah, the age-old question of accrued interest. I'm pretty sure the answer is 10, but I'll double-check my calculations just to be sure. Yep, definitely D) 10.

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Lynelle

27 days ago

I'm not sure, but I think it's C) 120 as well. The bond is trading above par value, so the accrued interest should be higher.

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Nikita

29 days ago

Hmm, let's see. If the bond is trading at 110% of the par value, that means it's worth USD 1,100. And with a 12% coupon rate, the accrued interest must be 10, right? D) 10 is the answer.

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Corrina

15 days ago

I think you're right. The accrued interest should be 10.

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Janine

1 months ago

I agree with Tracey. The accrued interest would be 120.

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Tracey

1 months ago

I think the answer is C) 120.

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