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Basic Question 3 of 6
If you invested in a security promising to pay 3.75% compounded semi-annually, what would your total value per dollar invested be after 10 years?
B. 1.44504
C. 1.44995
A. 37.5
B. 1.44504
C. 1.44995
User Contributed Comments 7
| User | Comment |
|---|---|
| gaur | n = 20, i= 3.75/2=1.875, pv = (-) 100, PMT=0, FV?? ---> 144.995 |
| zzhumanov | Divide by 100 to find per dollar value |
| julescruis | thanks guys good recap |
| jwebbs | damn i keep forgetting its quoted as yearly so i forget to /2. |
| moneyguy | Exactly like gaur, but: pv = -1 cpt FV = 1.4499 (very nice :) |
| kingirm | Why pmt=0 ? |
| MathLoser | EAR |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
calculate and interpret the present value(PV) of fixed-income and equity instruments based on expected future cash flows
calculate and interpret the implied return of fixed-income instruments and required return and implied growth of equity instruments given the present value (PV) and cash flows
CFA® 2024 Level I Curriculum, Volume 1, Module 2.