Schweser Q Bank - 116827 market

bchadwick

Can any one explain this Q bank Q&A on Contingent immunization


Initially, each coupon bond had a market value of $1,080.

INPUTS: N= 20, I/Y = 3.25, PMT = 38, FV = 1,000, CPT PV ?

Colum

Afraid not.

I got the same answer they did with their figures but when I used the total amounts of the bond I came out with a different answer I always use totals and came up with a different horizon return. It may be rounding. I'm not going to worry too much though. It's a simple enough concept.