CFA® Level I question of the day
13 October 2026 · Fixed Income
A bond's price is the present value of:
Show the answer and explanation
Answer: B. its coupons and its principal repayment
Every cash flow the holder will receive is discounted at the required yield, including the return of par at maturity.
- A. its principal repayment only - That is true of a zero-coupon bond alone. A coupon bond has interim cash flows that also carry value.
- C. its coupons only - The return of par at maturity is usually the largest single cash flow, and for a discount bond it is where much of the return sits.
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Notes, formulas and a worked question for every learning outcome are on the Fixed Income page, with the whole CFA Level I syllabus alongside.