FINANCE CFA (FINANCECFA)
Sun Valley Middle School
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CFA 51: FIXED INCOME SECURITIES: DEFINING ELEMENTS WITH CORRECT ANSWERS
- Exam (elaborations) • 25 pages • 2023
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A 10-year bond was issued four years ago. The bond is denominated in US dollars, offers a coupon rate of 10% with interest paid semi-annually, and is currently priced at 102% of par. The bond's: tenor is six years. nominal rate is 5%. redemption value is 102% of the par value. Correct Answer A is correct. The tenor of the bond is the time remaining until the bond's maturity date. Although the bond had a maturity of 10 years at issuance (original maturity), it was issued four years ago. Thus, t...
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