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Basic Question 2 of 5

After some number crunching exercises you have got the VND of 102.80 per 100 of par value for a 5-year, 3.80% annual payment corporate bond. The overall CVA is 4.28. The fair value of the bond is therefore:

A. 95.72
B. 98.52
C. need more information.

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Edward Liu

Edward Liu

Learning Outcome Statements

calculate the value of a bond and its credit spread, given assumptions about the credit risk parameters;

CFA® 2025 Level II Curriculum, Volume 4, Module 29.