ICMA Exam FMFQ Topic 6 Question 64 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 64
Topic #: 6

[All FMFQ Questions]

The dirty price of a bond is which of the following:

AThe same as the clean price

BClean price + interest of the period from the last coupon payment date

CClean price + interest of the period from settlement until the next coupon payment date

DClean price + trading commissions

Show Suggested Answer

Suggested Answer: B

by Moon at Aug 25, 2024, 08:45 AM

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Janey

3 months ago

Bond pricing, huh? I'd rather be pricing my fantasy football lineup. But I digress, C is the way to go.

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Colette

1 months ago

No, it's definitely C. Trust me.

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Maurine

2 months ago

I think it's B, actually.

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Fanny

2 months ago

I agree, C is the correct answer.

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Jolene

3 months ago

I think it's the clean price plus trading commissions, as those are part of the total cost of buying the bond.

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Yuki

3 months ago

I agree with Glory, the dirty price includes the interest for the period until the next coupon payment.

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Glory

3 months ago

No, I believe it's the clean price plus interest from settlement until the next coupon payment date.

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Aide

3 months ago

I think the dirty price of a bond is the same as the clean price.

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Myra

3 months ago

Dirty price? Sounds like something my dog would roll in. Anyway, I'm going with C. Clean price plus that interest thingy.

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Diane

3 months ago

Ugh, I always get these bond pricing questions mixed up. Let me think...I think C is the right one, but I'm not totally sure.

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Eric

2 months ago

Oh, I see. Thanks for clarifying that, I always get confused with bond pricing too.

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Sylvie

2 months ago

Actually, it's B. The dirty price is the clean price plus the interest of the period from the last coupon payment date.

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Sheldon

2 months ago

I agree, C seems to be the most logical choice for the dirty price calculation.

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Stefania

2 months ago

I think C is correct, it includes the interest from settlement until the next coupon payment date.

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Shanda

3 months ago

Clearly the dirty price is the clean price plus the accrued interest until the next coupon payment. C is the correct answer.

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Tamesha

3 months ago

So, the answer is C then. Clean price + interest of the period from settlement until the next coupon payment date.

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Margarita

3 months ago

Yes, that's correct. It's the clean price plus the interest from settlement to the next coupon payment date.

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Karina

3 months ago

I think the dirty price includes the accrued interest until the next coupon payment.

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