[PDF] Top 20 CFA 2018 Level 2 Fixed Income Quest bank R39 Credit Default Swaps Q Bank

... the credit protection buyer promises to make future payments, he/she is regarded as being short and the credit protection seller who receives payments till a credit event is triggered, is considered ... Lihat dokumen lengkap

... 9. Sonia Batla, senior fixed income analyst, is interviewing Hina Abdullah for the post of a junior analyst. Batla asks Abdullah to determine the value of a 3.5% annual-pay coupon option-free bond of $100 ... Lihat dokumen lengkap

... the same Treasury note in two years and then hold it for three years to maturity. Scott’s portfolio manager asks him to calculate the forward rate that would cause investors to be indifferent about either purchasing the ... Lihat dokumen lengkap

... a fixed spread added to the one-year forward rates derived from the default-free benchmark yield curve to value risky ...the fixed-rate payer of an interest rate swap over the rate of recently issued ... Lihat dokumen lengkap

... 15. C is correct. For the structural model, one cannot use historical estimation. The reason is that the company’s assets (which include buildings and non-traded investments) do not trade in frictionless markets. ... Lihat dokumen lengkap

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... 7. A is correct. The odds of an event can be determined by dividing the probability of the event occurring by the probability of the event not occurring. As a formula this can be expressed as: P(E) / (1 – P(E)). In this ... Lihat dokumen lengkap

... LO.j: Identify the appropriate test statistic and interpret the results for a hypothesis test concerning 1) the variance of a normally distributed population, and 2) the equality of the variances of two normally ... Lihat dokumen lengkap

... 2. A is correct. Storability affects the quality and weight of softs (cash crops). Most industrial metals can be stored for long periods therefore the quality is unlikely to be affected by weather. Grains are ... Lihat dokumen lengkap

... resistance level it shows high demand than supply above resistance level and on price returning to the resistance level the demand again rises which lifts the price up and hence the level ... Lihat dokumen lengkap

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... 7. C is correct. A and B should be considered in analyzing multi-family residential properties. High construction activity implies high anticipated demand which will impact rental income. The state of the regional ... Lihat dokumen lengkap

... 13. A 30-unit apartment building rents for $1,000 per unit per month with 10% vacancy. Operating expenses are 45% of effective gross income, and management costs are 10% of effective gross income. Other ... Lihat dokumen lengkap

... 5ÿ (<D 2-1 ÿ 0 D --) ÿ +,ÿ 6.ÿ .ÿ .-2ÿ * 4ÿ 0-1 I ÿ 1 - ÿ - ÿ !3 % Fÿ ,-2ÿ -ÿ !3 % Fÿ +,3 ÿ ; ÿ 4ÿ 0-1 I ÿ 2 ) .ÿ .+) 62ÿ (<ÿ 6- ÿ , = ÿ 4ÿ ,1 +ÿ +1 -ÿ ÿ J= <(E3 E3 ÿ ; ÿ 4ÿ 0-1 I ÿ 2 ) .ÿ 1 ... Lihat dokumen lengkap

... 4. B is correct. Preston Partners did not have proper supervisory procedures to ensure that those under its supervision complied with applicable laws, rules and the CFA Institute Standards. Preston Partners had ... Lihat dokumen lengkap

... 1. A is correct. No CFA Standard precludes its members or candidates from joining a competing business. However, employees often have to sign non-compete agreements that prohibit them from taking part in certain ... Lihat dokumen lengkap

... 14. A is correct. Collaterals are assets underlying the debt obligation above and beyond the issuer’s promise to pay. Credit enhancements are provisions that may be used to reduce the credit risk of the ... Lihat dokumen lengkap

... The strong-form efficient market hypothesis is defined as a market where security prices fully reflect all market data, which refers to all past price and both public and private informa[r] ... Lihat dokumen lengkap

... 31. C is correct. If the cumulative cash flows in the first two years equal the outlay and additional cash flows are not very large, this scenario is possible. For example, assume the outlay is 100, the cash flow in Year ... Lihat dokumen lengkap

... 9. Belma Corp. has a year-end book value per share of $18, and cost of equity of 8%. The company ’s ROE of 12% is expected to continue for the foreseeable future. Earnings are expected to grow at 10% and the payout ratio ... Lihat dokumen lengkap