CFA CFA I Exam
CFA Level I Chartered Financial Analyst (Page 36 )

Updated On: 26-Jan-2026

What is the bond's yield to maturity (YTM)?

  1. 9.26%.
  2. 10.34%.
  3. 10.05%.
  4. 10.55%.

Answer(s): B

Explanation:

N = 28, PMT = 120, PV = -1150, FV = 1000, CPT I/Y.



What rate should be used to estimate the potential return on this bond?

  1. the YTM.
  2. 12.00%.
  3. 10.34%.
  4. the YTC.

Answer(s): D



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?

  1. $964.
  2. $1,000.
  3. $1,122.
  4. $1,091.

Answer(s): D

Explanation:

This is a Present Value problem 5 years in the future. Input into your calculator:
N = 20, PMT = 100, FV = 1000, I/Y = 9CPT PV = 1,091.28The $900 purchase price is a distracter for this problem.



A trader has a long position in a wheat contract.
What is the price at which the trader will receive a maintenance margin call?

  1. $1.90.
  2. $2.05.
  3. $2.25.
  4. $1.75.

Answer(s): D

Explanation:

The trader would have to lose $1,250 or 5,000-3,750 before they get a margin call. 5,000(2.00-P) = 1,250. P = $1.75.



Which of the following statements is TRUE about the profits and losses from buying a put:

  1. potential losses are limited to the initial premium the buyer pays when he buys the put.
  2. potential profits are theoretically unlimited.
  3. potential losses are theoretically unlimited.
  4. none of these choices are correct.

Answer(s): A



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