Exam CFA-Level-I Topic 2 Question 871 Discussion

Actual exam question for CFA's CFA-Level-I exam
Question #: 871
Topic #: 2
Bond 1 is a 6%, 5-year bond, and Bond 2 is a 6%, 10-year bond. Both bonds yield 5%. What is the relative percentage of total future dollars that reinvestment income is expected to generate with Bond 1 and 2, respectively?

Suggested Answer: A Vote an answer

Bond 1: RI/(Total future dollars) = 3.61/133.61 = 0.027 Bond 2: RI/(Total future dollars) =
16.63/176.63 = 0.0942

by Reuben at Oct 02, 2025, 11:02 PM

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