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Exam Code: 1V0-71.21PSE

Exam Name: Associate VMware Application Modernization

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Q & A: 208 Questions and Answers

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What would be the total all in price payable on an 5% annual coupon bond quoted at a clean price of $98, where the settlement date is 60 days after the latest coupon payment. Use Act/360 day basis.
A. $98.00
B. $97.17
C. $98.83
D. $100.00
Answer: C
The all in price would be equal to the clean price plus accrued interest. The accrued interest for the 60 days that have passed since the last coupon payment is $5 x 60/360 = $0.83. Therefore the dirty price, or the all in price, will be $98.83. (Note that the $5 is the annual 5% coupon on the $100 face.)


A. Option D
B. Option B
C. Option A
D. Option E
E. Option C
Answer: A

t4 q11-1

t4 q11-2
Reference: http://technet.microsoft.com/library/gg610569.aspx

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