CFA固定收益证券知到智慧树期末考试答案题库2025年首都经济贸易大学

CFA固定收益证券知到智慧树期末考试答案题库2025年首都经济贸易大学ZetBankhasenteredintoacontractwithLoulyCorporationinwhichZetagreestobuya2.5%U.S.Treasurybondmaturingin10yearsandpromisestosellitbacknextmonthatanagreed-onpriceFromZetBank'sperspective,thiscontractisbestdescribedasa

答案:reverserepoWhichtypeofsecurityismostlikelytohavethesameratingastheissuer?

答案:SeniorunsecuredbondWhichtypeoffixed-incomesecurityismostlikelytohavecouponpaymentsthatresetperiodically?

答案:Floating-ratenotesWhichtypeofbondismostlikelytobepreferredbyinvestorsinafallinginterestrateenvironment?

答案:Aflooredfloating-ratenoteWhichofthefollowingtypeoffixedincomesecurityhasthelowestdegreeofinterestraterisk?

答案:Floating-ratebondWhichofthefollowingstatementsrelatingtoyieldvolatilityismostaccurate?Ifthetermstructureofyieldvolatilityisdownwardsloping,then:

答案:long-termyieldsaremorestablethanshort-termyields.Whichofthefollowingstatementsrelatingtocommercialpaperismostaccurate?

答案:Commercialpaperisasourceofinterimfinancingforlong-termprojectsWhichofthefollowingstatementsismostlikelycorrectregardingcreditspreads?

答案:Anunexpectedcreditdowngradeonacorporatebondcanresultingreatercreditaswellasliquidityrisk.Whichofthefollowingstatementsismostlikelycorrectaboutfloatingratenotes(FRNs)?

答案:Thelowertheissuer’screditquality,thehigherthespreadofafloatingratenote.Whichofthefollowingstatementsaboutthefixed-incomemarketisleastaccurate?

答案:Since,globally,thefixed-incomemarketisnotaspopularastheequitymarket,equitysecuritiesarefarmorediversethandebtsecurities.Whichofthefollowingstatementsaboutbondcallfeaturesisleastaccurate?Embeddedcalloptionsincallablebonds?

答案:Canbevaluedusingthedifferencebetweenthezero-volatilityspreadandthegovernmentspread.Whichofthefollowingsourcesofshort-termfundingforbanksismostlikelytohavethelowestinterestcost?

答案:CheckingdepositsWhichofthefollowingsourcesofreturnismostlikelyexposedtointerestrateriskforaninvestorofafixed-ratebondwhoholdsthebonduntilmaturity？

答案:ReinvestmentofcouponpaymentsWhichofthefollowingsecuritiesisleastlikelyclassifiedasaeurobond?Abondthatisdenominatedin:

答案:EurosandissuedinGermanyWhichofthefollowingreasonsindicateswhyanissuerprefersamake-wholeprovisiontoastandardcallprovision?

答案:Couponrateislower.Whichofthefollowingprovisionsisabenefittotheissuer?

答案:CallprovisionWhichofthefollowingproductsprovidesprotectionfrominflation?

答案:LinkersWhichofthefollowingprimarymarketmechanismscanbeemployedbyanissuerdesiringtospreadtheissueoveraseriesoftimeintervalswithouthavingtoprepareaseparateofferingcircularforeachbondissue?

答案:ShelfregistrationWhichofthefollowingpricesismostlikelyquotedbydealers?

答案:CleanpriceWhichofthefollowingisthehighestrankedunsecureddebt?

答案:SeniorunsecuredWhichofthefollowingismostlikelyanexampleofaEurobond?

答案:AnAustralianborrowerissuingCanadiandollar-denominatedbondsintheUKmarketWhichofthefollowingismostlikelyalimitationoftheyieldtomaturitymeasure?

答案:ItassumescouponpaymentscanbeinvestedattheyieldtomaturityWhichofthefollowingismostappropriateformeasuringabond’ssensitivitytoshapingrisk?

答案:keyratedurationWhichofthefollowingisleastlikelytobeanegativecovenantassociatedwithacoupon-payingcorporatebondissue?

答案:Aprohibitionfrominvestinginlong-termprojectsinemergingmarketcountriesWhichofthefollowingisleastlikelyashort-termfundingmethodavailabletobanks?

答案:SyndicatedloansWhichofthefollowingisleastlikelyafeatureofacreditcardreceivableABS?

答案:AmortizingcollateralWhichofthefollowingisleastlikelyacomponentofyieldspread?

答案:ExpectedinflationrateWhichofthefollowingisleastlikelyacharacteristicofTreasuryInflationProtectedSecurities?

答案:ParvalueisadjustedforinflationWhichofthefollowingisatypeofexternalcreditenhancement?

答案:AsuretybondWhichofthefollowingisasourceofwholesalefundsforbanks?

答案:NegotiablecertificatesofdepositWhichofthefollowingisadisadvantagetobondholdersifabondhasasinkingfundprovision?

答案:GreaterreinvestmentriskWhichofthefollowinginvestmentsaremostlybasedonafloatinginterestrate?

答案:Syndicatedorbilateralloans.Whichofthefollowingfactorswillmostlikelydrivetherepomarginlower?

答案:ShortersupplyofthecollateralWhichofthefollowingfactorswillleadanissuertopreferprivateplacementsoverpublicofferings?

答案:FlexibilityWhichofthefollowingcouponpaymentstructureswillallowinvestorstobenefitfromanincreaseininterestrates?

答案:Floatingratenotes(FRNs)Whichofthefollowingbondsismostlikelytotradeatalowerpricerelativetoanotherwiseidenticaloption-freebond?

答案:CallablebondWhichofthefollowingbondstructuresattractsthemoreconservativeclassesofinvestors?

答案:PutablebondWhichofthefollowingbestdescribesthemotivationforacorporationtoissuesecuritizedbonds?Securitizationofspecificassetsbyacorporationenablesthecorporationto:

答案:getacreditratingonbondsthatwillresultinalowercostofborrowingWhichofthefollowingbestdescribesthecashflowthatownersofcreditcardreceivableasset-backedsecuritiesreceiveduringthelockoutperiod?

答案:OnlyfinancechargescollectedandfeesWhichofthefollowingbestdescribesanegativebondcovenant?Theissueris

答案:prohibitedfrominvestinginriskyprojectsWhichofthefollowingaccountingissuesshouldmostlylikelybeconsideredacharacterwarningflagincreditanalysis?

答案:Significantoff-balance-sheetfinancingWhichindustrycharacteristicmostlikelyhasapositiveeffectonacompany’sabilitytoservicedebt?

答案:HighnumberofsupplierstotheindustryWhichbondsmostlikelyrankthehighestwithrespecttopriorityofclaims?

答案:SecondliendebtWhentheinvestor’sinvestmenthorizonislessthantheMacaulaydurationofthebondsheowns:

答案:marketpriceriskdominates,andtheinvestorisatriskofhigherrates.Wheninterestratesareforecastedtodecline,aninvestorwillmostlikelyprefera

答案:inversefloatingratenoteWhendeterminingthecapacityofaborrowertoservicedebt,acreditanalystshouldbeginwithanexaminationof:

答案:industrystructure.Whenaninvestmentbankunderwritesabondissue,thebank:

答案:buystheentireissueandtaketheriskofresellingittoinvestorsordealers.Whattypeofriskmostlikelyaffectsaninvestor'sabilitytobuyandsellbondsinthedesiredamountsandatthedesiredtime?

答案:LiquidityWhatismostlikelytohappentotheprepaymentrateandtheweightedaveragelifeofatypicalpass-throughsecurityifmortgageratesdecrease?

答案:OnewillincreaseandonewilldecreaseTwobondsAandBbothhave5yearstomaturity.BondA’scouponrateis6%andBondB’scouponrateis8%.Bothbondsarecurrentlytradingatparvalue.RelativetoBondB,fora200basispointsdecreasesintheyield,BondAwillmostlikelyexhibita(n):

答案:greaterpercentagepricechangeToobtainthespotyieldcurve,abondanalystwouldmostlikelyusethemost

答案:recentlyissuedandactivelytradedgovernmentbondsThreemonthsago,asteelmanufacturersolda5%bondissuewithafacevalueof£1,000andredemptionyieldof5%.Thebondwillbematuringintenmonths’time.Theissueismostlikelyclassifiedasa:

答案:capitalmarketsecurityThevalueofa10-year,6%coupon$100parvaluebondwithsemiannualpayments,assuminganannualdiscountrateof7%,isclosestto

答案:92.89Thevalueinsixyearsof$75,000investedtodayatastatedannualinterestrateof7%compoundedquarterlyisclosestto

答案:$113,733Theuseofwhichofthefollowingwillleastlikelyaidunderwrittenbondofferingsinpricediscovery?

答案:AuctionsThetranchesinacollateralizedmortgageobligation(CMO)thataremostlikelytoprovideprotectionforinvestorsagainstbothextensionandcontractionriskare

答案:plannedamortizationclass(PAC)tranchesTheriskthatabond’screditworthinessdeclinesisbestdescribedby:

答案:creditmigrationriskTherepomarginonarepurchaseagreementismostlikelytobelowerwhen

答案:theunderlyingcollateralisinshortsupplyTherepomarginonarepurchaseagreementismostlikelytobehigherwhen:

答案:thematurityoftherepurchaseagreementislong.Theratingagencyprocesswherebythecreditratingsonissuesaremovedupordownfromtheissuerratingbestdescribes:

答案:notching.Theprocessofsecuritizationisleastlikelytoallowbanksto

答案:repackageloansintosimplerstructuresTheprocessofmovingcreditratingsofdifferentissuesupordownfromtheissuerratinginresponsetodifferentpaymentprioritiesisbestdescribedas:

答案:notching.Thepriorityofclaimsforseniorsubordinateddebtis:

答案:lowerthanforseniorunsecureddebt.Theprimarymarketmechanismusedtoofferunregisteredbondswithoutanunderwritingtoalargeinstitutionalinvestorismostlikely:

答案:aprivateplacementThepresenceofanembeddedcalloptionwilldecreasetheeffectivedurationofabond:

答案:onlywheninterestratesarefalling.Thenominalrisk-freerateisbestdescribedasthesumoftherealrisk-freerateanda

答案:expectedinflationpremiumThemarketvalueofan18-yearzero-couponbondwithamaturityvalueof$1,000discountedata12%annualinterestratewithsemi-annualcompoundingisclosestto

答案:$122.74Thelegalcontractthatdescribestheformofthebond,theobligationsoftheissuer,andtherightsofthebondholderscanbebestdescribedasabond’s

答案:indentureTheinvestor’srealizedhorizonyieldmatchestheyield-to-maturityif:

答案:thebondissoldatapriceontheconstant-yieldpricetrajectory.Theinterestrateriskofafixed-ratebondwithanembeddedcalloptionisbestmeasuredby:

答案:EffectivedurationTheinterestincomegeneratedbyinvestorsofmunicipalbondissuedintheUnitedStatesismostlikely:

答案:exemptfromfederalincometaxandfromtheincometaxofthestateinwhichthebondsareissued.Theholdingperiodforabondatwhichthecouponreinvestmentriskoffsetsthemarketpriceriskisbestapproximatedby:

答案:MacaulaydurationThegovernmentofIlaka,adevelopingcountry,hasissued30-yearcapital-indexedbondslinkedtothedomesticconsumerpriceindex(CPI)inlocalcurrencyIA.ThebondshaveaparvalueofIA1,000.Thebondsmakesemi-annualcouponpaymentsatarateof6%.OverthemostrecentsixmonthstheCPIhasincreasedby4%.Ifthebondswereinterest-indexedbondsasopposedtocapital-indexedbonds,semi-annualcouponwouldhavebeen

答案:thesameTheFloridastateauthoritieshavesolda3-year,4%semi-annualcouponpaying,fixed-ratebondissuewithafacevalueof$1.0millionor£0.7million.ThecouponpaymentsaretobemadeinUSdollarswhiletheparvaluewillberepaidinBritishpounds(GBP).Whichofthefollowingstatementsregardingthebondissueismostlikelycorrect?

答案:Theprincipalvalueofthebondis£0.7million.TheflatpriceforBondAinQuestion4on16June2018isclosestto

答案:102.18Thefactorconsideredbyratingagencieswhenacorporationhasdebtatbothitsparentholdingcompanyandoperatingsubsidiariesisbestreferredtoas:

答案:structuralsubordination.Thefacevalueofa$1,000,000T-billwith78daystomaturityispricedat$987,845.Whatisthebankdiscountyield(annualized)quotefortheT-bill?

答案:5.61%Thedistinctionbetweeninvestmentgradedebtandnon-investmentgradedebtisbestdescribedby

答案:creditqualityThedifferencebetweenon-the-runandoff-the-runU.S.Treasurysecuritiesisthaton-the-runTreasurysecuritiesare:

答案:themostrecentlyauctionedTreasurysecuritiesineachmaturity,whileoff-the-runTreasurysecuritiesareissuesauctionedpreviously.Thecurrentyieldfora4.5%coupon,10-yearbond,withamaturityparvalueof$100andcurrentlypricedat$85.70isclosestto

答案:5.25%Thebondequivalentyieldofa180-daybanker'sacceptancequotedatadiscountrateof4.25%fora360-dayyearisclosestto

答案:4.4%Thebid-askspreadforabondmostlikelyconveysinformationabout:

答案:itsliquidity,butnotitscreditquality.Theaccruedinterestper100ofparvalueforBondAinQuestion4on16June2018isclosestto

答案:0.92The2-yearand4-yearspotratesare3.5%and4.2%,respectively.Whatistheimplied2-yearforwardrate2-yearfromnow,iftherateissemi-annuallycompounded?

答案:0.04902The“second-order”effectonabond’spercentagepricechangegivenachangeinyield-to-maturitycanbebestdescribedas:

答案:convexitySupporttranchesaremostappropriateforinvestorswhoare

答案:willingtoacceptprepaymentriskinexchangeforhigherreturnsStedsmartLtdandFignermoLtdarealikewithrespecttofinancialandoperatingcharacteristics,exceptthatStedsmartLtdhaslesspubliclytradeddebtoutstandingthanFignermoLtd.StedsmartLtdismostlikelytohave

答案:highermarketliquidityriskSecuritizationbenefitsfinancialmarketsby

答案:allowinginvestorstotailorcreditriskandinterestrateriskexposurestomeettheirindividualneedsSecondarybondmarkets

答案:facilitatedirecttradingbetweeninvestorsResidentialmortgagesthatmaybeincludedinagencyRMBSareleastlikelyrequiredtohave

答案:aminimumloan-to-valueratioRelativetoanotherwisesimilaroption-freebond.a

答案:putablebondwilltradeatahigherpriceRecenteconomicdatasuggestanincreasinglikelihoodthattheeconomywillsoonenterarecessionaryphase.Whatisthemostlikelyeffectontheyieldsoflower-qualitycorporatebondsandoncreditspreadsoflower-qualityversushigher-qualitycorporatebonds:

答案:BothwillincreaseRachelLakeisevaluatingthepotentialforbondpricestochangegiventhemarketdiscountrate.Shederivesthefollowingconclusions:Conclusion1:Theconvexityeffectcanbeobservedasthetendencyforbondpricestoincreasewhenmarketdiscountratesdecrease.Conclusion2:Fortwobondsofferinganidenticalcouponrate,thematurityeffectresultsinthelonger-termbondbeingmoreprice-sensitivethanashorter-termbondwhenthechangeinmarketdiscountratesisidentical.Lakeismostlikelycorrectwithrespectto:

答案:conclusion2only.Proceedsforrepayingsecuritizedbondsmostlikelycomefromthe

答案:cashflowsoftheunderlyingfinancialassetsOn15December2013,AlphaCorpissueda10-yearcallablebondpayinganannualcouponof8%.Thebondiscallableinwholeorinpartatanytimeafter15December2018.Thistypeofcallablebondismostlikelyreferredtoas

答案:AmericanstyleMatrixpricingallowsinvestorstoestimatemarketdiscountratesandpricesforbonds

答案:thatarenotactivelytradeLossseverityisbestdescribedasthe:

答案:portionofabond’svalue,includingunpaidinterest,aninvestorlosesintheeventofdefault.JasonStambaughpurchasesathree-yearcorporatebondthatpaysannualcouponatarateof6%.Thebond’syield-to-maturityis5%anditispricedat104.3294per100ofparvalue.Thebond’scouponpaymentperiodsareevenlyspaced.Thebond’sMacaulaydurationisclosestto:

答案:2.84JamesCunninghamisevaluatingthefactorsthatinfluenceissueratings.Hehasidentifiedanddescribedtwofactorswhichhehassummarizedbelow:Factor1:Thehighertheseniorunsecuredranking,thelowerthenotchingadjustmentwillbe.Factor2:Inthecaseofstructuralsubordination,debtoftheparentholdingcompanyisservicedbeforethatofoperatingsubsidiaries.Cunninghamismostlikelycorrectwithrespectto:

答案:factor1only.Investorsseekingsomegeneralprotectionagainstapooreconomyaremostlikelytoselecta

答案:credit-linkedcouponbondInusingmatrixpricingtoestimatetherequiredyieldspreadonanewcorporatebondissue,thebenchmarkrateusedismostlikelytobethe

答案:yieldtomaturityonagovernmentbondwithasimilartimetomaturityInthesecuritizationprocess,whichofthefollowingismostlikelyathirdpartytothetransaction?the

答案:financialguarantorIntheeventofdefault,whichofthefollowingismostlikelytohavethehighestrecoveryrate?

答案:SecondlienIntheeventofdefault,therecoveryrateofwhichofthefollowingbondswouldmostlikelybethehighest?

答案:FirstmortgagedebtIntheeventofdefault,debentures’claimswillmostlikelyrank:

答案:belowthatofsecureddebtholdersInthecontextofcommercialmortgage-backedsecurities(CMBS)whichofthefollowingmechanismsismostlikelyastructuralcallprotection?

答案:Sequential-paytranchesInrepurchaseagreements,repomarginprovidesamarginofsafetytothe:

答案:cashlender,ifthecollateral’smarketvaluedeclines.Inprimarybondmarkets,themethodofallowingcertainauthorizedissuerstoofferadditionalbondstothegeneralpublicbypreparingasingle,all-encompassingofferingcircularismostlikelyknownasa(n)

答案:shelfregistrationInordertodeterminethecapacityofacompany,itwouldbemostappropriatetoanalyzethe:

答案:growthprospectsoftheindustryInordertoanalyzethecollateralofacompanyacreditanalystshouldassessthe:

答案:valueofthecompany’sassetsinrelationtothelevelofdebtInmostcountriesincludingtheUnitedStates,debentureisdefinedas:

答案:anunsecuredbondInmajordevelopedbondmarkets,newlyissuedsovereignbondsaremostoftensoldtothepublicviaa(n)

答案:auctionInanunderwrittenoffering,aninvestmentbankthatunderwritesabondissuemostlikely

答案:buysandresellsthenewlyissuedbondstoinvestorsordealersInasecuritization,timetranchingprovidesinvestorswiththeabilitytochoosebetween

答案:extensionandcontractionrisksInasecuritization,thespecialpurposeentity(SPE)isresponsibleforthe

答案:issuanceoftheasset-backedsecuritiesInasecuritizationstructure,credittranchingallowsinvestorstochoosebetween:

答案:subordinatedbondsandseniorbondsInamortgagepass-throughsecurity,thepass-throughrate

答案:adjuststherateontheunderlyingpoolofmortgagesbyaservicingfeeInabankruptcyproceeding,whentheabsolutepriorityofclaimsisenforced:

答案:creditorswithasecuredclaimhavethefirstrighttothevalueofthatspecificproperty.Immediatelyafteritscouponrateisreset,afloating-ratenoteispricedat98.50percentofpar.Itismostlikelythat:

答案:thenote’screditqualityhasdecreasedsinceissuanceIfinterestratesincrease,aninvestorwhoownsamortgagepass-throughsecurityismostlikelyaffectedby

答案:extensionriskIf

interest

rates

are

expected

to

increase,

the

coupon

payment

structure

most

likely

to

benefit

the

issuer

is

a

答案:cap

in

a

floating-rate

noteIfgoodwillmakesupalargepercentageofacompany’stotalassets,thismostlikelyindicatesthat:

答案:alargepercentageofthecompany’sassetsarenotofhighqualityIfacallablebondhasanoption-adjustedspread(OAS)of75bps,thismostlikelysuggests:

答案:thebondhasazero-volatilityspreadgreaterthan75bpsHoldingallotherfactorsconstant,themostlikelyeffectoflowdemandandheavynewissuesupplyonbondyieldspreadsisthatyieldspreadswill:

答案:widenGreenAssociatesownsa3%semi-annualcouponpaying,4-yearbondissuewithaparvalueof$10,000thatiscurrentlypricedat$9,783.14.Theannualizedyieldtomaturityoftheissueisclosestto

答案:3.59%Grandparentsarefundinganewborn'sfutureuniversitytuitioncosts,estimatedat$50,000/yearforfouryears,withthefirstpaymentduein18years.Assuminga6%effectiveannualrate,therequireddeposittodayisclosestto

答案:64341Givenastatedannualinterestrateof6%compoundedquarterly,thelevelamountthat，depositedquarterly,willgrowto$25,000attheendof10yearsisclosestto

答案:461FromtheperspectiveofaCDOmanager,anarbitragecollateralizeddebtobligationmostlikelydiffersfromatraditionalasset-backedsecuritybecauseitinvolvesthe

答案:activemanagementofthecollateralFortheissuer,asinkingfundarrangementismostsimilartoa

答案:serialmaturitystructureForratingagencies,theprimaryfactorinassigningtheirratingsis:

答案:likelihoodofdefaultForbondsthatareotherwiseidentical,theoneexhibitingthehighestlevelofpositiveconvexityismostlikelytheonethatis

答案:putableForahigh-qualitydebtissuerwithalargeamountofpubliclytradeddebt,bondinvestorstendtodevotemostefforttoassessingtheissuer’s:

答案:defaultrisk.Forafullyamortizedbond,theannualpayment,whichincludesboththecouponpaymentandtheprincipalrepayment:

答案:remainsconstantForafullyamortizedbond,theannualpayment,whichincludesboththecouponpaymentandtheprincipalrepayment

答案:remainsconstantForadiscountrategreaterthanzero,ifthemoneymarketdiscountrateisusedasaproxyforaninvestor’srateofreturn,therateofreturnwillmostlikelybe:

答案:understatedFixedincomeclassificationsbygeographymostlikelyinclude:

答案:emergingmarketbonds.Evaluatinga7%,10-yearbondthatiscallableatparin5years.Couponpaymentcanbereinvestedat7%annually,andthecurrentpriceofthebondis$106.50.Thebondpaysinterestsemiannually.Shouldtheyieldtocall(YTC)oryieldtomaturity(YTM)beanappropriatemeasure?

答案:YTC,sinceYTCislessthanYTMEffectivedurationisessentialtomeasuringinterestrateriskofabondwithanembeddedcalloptionbecause:

答案:itismeasuredassensitivitytochangesintheyield-to-worst.Eachbondcomprisingtheparcurve:

答案:ispricedatparvalue.Duringbankruptcyproceedingsofafirm,thepriorityofclaimswasnotstrictlyadheredto.Whichofthefollowingistheleastlikelyexplanationforthisoutcome?

答案:ThevalueofsecuredassetswaslessthantheamountoftheclaimsDMTCorpissuedafive-yearfloating-ratenote(frn)thatpaysaquarterlycouponofthree-monthLiborplus125bps.TheFRNispricedat96per100ofparvalue.Assuminga30/360-daycountconvention,evenlyspacedperiods,andconstantthree-monthLiborof5%,thediscountmarginfortheFRNisclosest

答案:221bpsCreditspreadsaremostlikelytonarrowduring

答案:economicexpansionsCreditriskofacorporatebondisbestdescribedasthe:

答案:riskoflossresultingfromtheissuerfailingtomakefullandtimelypayments.Creditriskisanimportantconsiderationforcommercialmortgage-backedsecurities(CMBS)becausetheCMBSarebackedbymortgageloansthat

答案:arenon-recourseContingentconvertiblebonds:

答案:forcebondholderstotakelosses.Contingentconvertiblebondsaredescribedmostaccuratelyasthosewhich,ifaspecifiedeventoccurs:

答案:convertautomaticallytoequityConsiderbondsthathavethesameyieldtomaturityandmaturity.Thebondwiththegreatestreinvestmentriskismostlikelytheonesellingat:

答案:premiumConsiderafive-yearoption-freebondthatispricedatadiscounttoparvalue.Assumingthediscountratedoesnotchange,oneyearfromnowthevalueofthebondwillmostlikely

答案:increaseConsidera$100parvaluebond,withan8%couponpaidannually,maturingin20years.Ifthebondcurrentlysellsfor$96.47,theyieldtomaturityisclosestto:

答案:8.37%Considera$100parvaluebondwitha7%couponpaidannuallyand5yearstomaturityatadiscountrateof6.5%,thevalueofthebondtodayis$102.08.onedaylater,thediscountrateincreasesto7.5%.Assumingthediscountrateremainsat7.5%overtheremaininglifeofthebond,whatismostlikelytooccurtothepriceofthebondbetweentodayandmaturity?

答案:DecreasesthenincreasesComparedwithdevelopedmarketsbonds,emergingmarketsbondsmostlikely

答案:exhibithigherriskComparedwithanotherwiseidenticaloption-freebond,wheninterestratesfall,thepriceofacallablebondwill

答案:riselessCentroCorp.recentlyissuedafloating-ratenote(FRN)thatincludesafeaturethatpreventsitscouponratefromfallingbelowaprespecifiedminimumrate.ThisfeatureinanFRNismostlikelyreferredtoasa:

答案:floorCallablebutcanbecalledeveryOctober10oneyearfromnowtillmaturity.Thecallprovisionismostlikelya(n):

答案:BermudacallBondAisasemi-annualcouponbondwithacouponrateof5%.ItpaysinterestonApril10andOctober10eachyearanditsmaturitydateisOct10,2020.IfitsYTMis4%and30/360day-countconventionmethodisused,whatisitsfullpriceonJune16,2018?

答案:103.10Besteffortofferings

答案:arelessriskyrelativetounderwrittenofferingsforaninvestmentbankAtthetimeoffinancialcrisesbanks:

答案:reducefundingtootherbanksasinterbankdepositsareunsecured.Assumingnochangeinthecreditriskofabond,thepresenceofanembeddedputoption:

答案:reducestheeffectivedurationofthebond.Aninvestorwouldliketoinvestinasecuritythatoffersinflationprotectionforbothinterestandprincipalrepayments.Whichofthefollowingbondstructuresismostsuitableforthisinvestor?

答案:Capital-indexedbondAninvestorwhoownsamortgagepass-throughsecurityisexposedtocontractionriskwhichistheriskthatwheninterestrates

答案:decline,thesecuritywilleffectivelyhaveashortermaturitythanwasanticipatedatthetimeofpurchaseAninvestorwhoiscalculatingthearbitrage-freevalueofaTreasurysecurityshoulddiscounteachcashflowusingthe:

答案:TreasuryspotratethatisspecifictoitsmaturityAninvestorsellsabondatthequotedpriceof$98.00.Inaddition,shereceivesaccruedinterestof$4.40.Theflatpriceofthebondisequaltothe

答案:agreedonbondpriceexcludingaccruedinterestAninvestorseekingprotectionagainstbothextensionandcontractionriskshouldinvestina

答案:plannedamortizationclass(PAC)trancheAninvestorpurchasesanannualcouponbondwitha6%couponrateandexactly20yearsremaininguntilmaturityatapriceequaltoparvalue.Theinvestor’sinvestmenthorizoniseightyears.Theapproximatemodifieddurationofthebondis11.470years.Thedurationgapatthetimeofpurchaseisclosestto:

答案:4.158Aninvestorpurchasesabondatapriceaboveparvalue.Twoyearslater,theinvestorsellsthebond.Theresultingcapitalgainorlossismeasuredbycom-paringthepriceatwhichthebondissoldtothe:

答案:carryingvalue.Aninvestorisleastlikelyexposedtoreinvestmentriskfromowninga(n)

答案:zero-couponbondAninvestorischoosingbetweentwomoneymarketinstrumentsofthesamecreditrisks.i.180-daycommercialpaperatadiscountrateof7.85%for360-dayyear.ii.