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CIMA Financial Strategy F3 Question # 113 Topic 12 Discussion

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CIMA Financial Strategy F3 Question # 113 Topic 12 Discussion

F3 Exam Topic 12 Question 113 Discussion:
Question #: 113
Topic #: 12

PYP is a listed courier company. It is looking to raise new finance to fit each of its delivery vans with new equipment to allow improved parcel tracking for customers The senior management team of PYP have decided on a 10-year secured bond to finance this investment-

Which TWO of the following variables are most likely to decrease the yield to maturity of the bond?
A.

Changing the term of the bond from 1 0 years to 5 years to match the expected life of the new equipment

B.

The announcement of a new contract for PYP that will increase operating profits by 5°/o over the next 5 years.

C.

The senior management team decide to issue a convertible bond rather than a conventional bond

D.

The senior management team decide to issue an unsecured bond rather than a secured bond

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Actual exam question for CIMA F3 exam by Echo465 at Dec 17, 2025, 1:16:09 PM

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