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Basic Question 7 of 10
A 10-year, 10% annual coupon payment bond is priced at 113.42 per 100 of par value. Its yield-to-maturity is 8%. If an investor has a six-year time horizon, and the interest rates remain at 8%, the horizon yield of the investor will be:
B. 9%
C. 10%
A. 8%
B. 9%
C. 10%
User Contributed Comments 1
| User | Comment |
|---|---|
| janglejuic | Wait, is this question trying to be tricky? |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe the relationships among a bond's holding period return, its Macaulay duration, and the investment horizon
define, calculate, and interpret Macaulay duration
CFA® 2025 Level I Curriculum, Volume 4, Module 10.