CFA固定收益證券智慧樹知到期末考試答案章節(jié)答案2024年首都經(jīng)濟貿(mào)易大學

CFA固定收益證券智慧樹知到期末考試答案+章節(jié)答案2024年首都經(jīng)濟貿(mào)易大學A181-dayTreasurybillhasafacevalueof$10.000millionandapresentvalueof$9.219million.Assuminga360-dayyear,theinstrument’sdiscountrateisclosestto:

答案:15.53%Afour-year6%semiannualcouponpaymentcorporatebondispricedat110per100ofparvalue.Itsyieldtomaturityis7.87%,quotedonasemiannualbasis.Theannualrateofthebondthatcanbeusedfordirectcomparisonwithotherwisecomparablebondsthatmakequarterlycouponpaymentsisclosestto:

答案:7.79%Whichofthefollowingstatementsismostlikelycorrectaboutfloatingratenotes(FRNs)?

答案:Thelowertheissuer’screditquality,thehigherthespreadofafloatingratenote.Asharerepurchaseagreementwithahighlyrated,shortinsupply,sovereignbondascollateralisassociatedwith:

答案:alowreporateAtthetimeoffinancialcrisesbanks:

答案:reducefundingtootherbanksasinterbankdepositsareunsecured.A12%semi-annualcouponpayingbondhasthree-yearmaturity.Basedonthespotratesequenceatthetimeofbondissuance,thebondispricedat105.80(per100ofparvalue).Relativetobond’scouponrate,theyield-to-maturityofthebondissueismostlikely:

答案:lowerA7-year6%annualcouponpaymentbondpricedat100ofparvalueistradinginthemarketfor103.Themodifieddurationandconvexityofthebondis6.5and86respectively.Theapproximatereturnimpactonthebondfrom150basispointsspreadwideningisclosestto:

答案:-8.78%Whichofthefollowingsourceoffinancingisleastexpensiveforahighlyratedcompany?

答案:BondissuedinfinancialmarketAninvestorwouldliketoinvestinasecuritythatoffersinflationprotectionforbothinterestandprincipalrepayments.Whichofthefollowingbondstructuresismostsuitableforthisinvestor?

答案:Capital-indexedbondCallablebutcanbecalledeveryOctober10oneyearfromnowtillmaturity.Thecallprovisionismostlikelya(n):

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

答案:capitalmarketsecurityAdealerbelievesthatthebondsissuedbySuper-TeeEnterprises(SUTEE)areconsiderablyovervaluedandwantstobenefitfromthemispricing.Forachievingthisobjective,thedealerborrows100parvaluebondsofSUTEEfromaninstitutionalinvestorandlendscashinreturn.Thebondshaveastatedcouponrateof7.5%.Theabovetransactionwillbestbeknownasa:

答案:reverserepurchaseagreement,andthecouponwillbelongtotheborrowerofcash.Contingentconvertiblebonds:

答案:forcebondholderstotakelosses.Whichofthefollowingreasonsindicateswhyanissuerprefersamake-wholeprovisiontoastandardcallprovision?

答案:Couponrateislower.Whichofthefollowingtypeoffixedincomesecurityhasthelowestdegreeofinterestraterisk?

答案:Floating-ratebondA7%annualcouponbondistradingatapriceof105.67andhasthreeyearstomaturity.A5.5%annualpayment,3-yearT-noteistradingatapriceof107.89.A5-year7%annualcouponT-noteistradingatapriceof109.77.Giventheaboveinformation,theG-spreadwillbeclosestto:

答案:2.19%A$1,000par,semiannual-paycouponbondistradingfor89.14,hasacouponrateof8.75%,andaccruedinterestof$43.72.Theflatpriceofthebondis:

答案:891.4Anannual-paycouponbondistradingfor$994.Apricingmodelprojectsthatthebondwouldbevaluedat$988ifbenchmarkyieldcurveincreasedby1%and$997ifthebenchmarkyieldcurvedecreasedby1%.Thisbondmostlikely:

答案:exhibitsnegativeconvexityWhichofthefollowingisleastlikelyashort-termfundingmethodavailabletobanks?

答案:SyndicatedloansWhichofthefollowingbondsismostlikelytotradeatalowerpricerelativetoanotherwiseidenticaloption-freebond?

答案:CallablebondA4%annualcoupon,10-yearbondhasayieldtomaturityof5.2%.Ifthepriceofthebondisunchangedtwoyearslater,itsyieldtomaturityatthattimeis:

答案:greaterthan5.2%Themarketvalueofan18-yearzero-couponbondwithamaturityvalueof$1,000discountedata12%annualinterestratewithsemi-annualcompoundingisclosestto

答案:$122.74ABL.LtdisanAustraliancompanythathasfinancedajointventureprojectinSingaporeusinga15-year,fixed-ratebondpayingsemi-annualcouponsthataredenominatedinSingaporedollars.Thebond'sparvalue,tobepaidatmaturity,isdenominatedinU.S.dollars.Thisbondisanexampleofa

答案:dual-currencybondInrepurchaseagreements,repomarginprovidesamarginofsafetytothe:

答案:cashlender,ifthecollateral’smarketvaluedeclines.Forbondsthatareotherwiseidentical,theoneexhibitingthehighestlevelofpositiveconvexityismostlikelytheonethatis

答案:putableInprimarybondmarkets,themethodofallowingcertainauthorizedissuerstoofferadditionalbondstothegeneralpublicbypreparingasingle,all-encompassingofferingcircularismostlikelyknownasa(n)

答案:shelfregistrationWhatismostlikelytohappentotheprepaymentrateandtheweightedaveragelifeofatypicalpass-throughsecurityifmortgageratesdecrease?

答案:OnewillincreaseandonewilldecreaseWhichtypeofbondismostlikelytobepreferredbyinvestorsinafallinginterestrateenvironment?

答案:Aflooredfloating-ratenoteAbondiscurrentlypricedat89.187per100parvalue.Ifyieldsincreaseby10bp,thevalueofbondfallsto88.215.However,ifyieldsdecreasebythesameamountthevalueofthebondrisesto90.237.Theapproximatemodifieddurationforthebondisclosestto:

答案:11.33Considerafive-yearoption-freebondthatispricedatadiscounttoparvalue.Assumingthediscountratedoesnotchange,oneyearfromnowthevalueofthebondwillmostlikely

答案:increaseInasecuritizationstructure,credittranchingallowsinvestorstochoosebetween:

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

答案:conclusion2only.Effectivedurationisessentialtomeasuringinterestrateriskofabondwithanembeddedcalloptionbecause:

答案:itismeasuredassensitivitytochangesintheyield-to-worst.Whentheinvestor’sinvestmenthorizonislessthantheMacaulaydurationofthebondsheowns:

答案:marketpriceriskdominates,andtheinvestorisatriskofhigherrates.Theholdingperiodforabondatwhichthecouponreinvestmentriskoffsetsthemarketpriceriskisbestapproximatedby:

答案:MacaulaydurationAhighyieldbondissuerhasofferedthe‘changeofcontrolput’toitsbondholders.Underthiscovenantintheeventofacquisition,thebondholderhasa(n):

答案:righttorequiretheissuertobuybacktheirdebtatparoratsomepremiumtopar.Thefactorconsideredbyratingagencieswhenacorporationhasdebtatbothitsparentholdingcompanyandoperatingsubsidiariesisbestreferredtoas:

答案:structuralsubordination.Acompanythathastwoissuesoutstandinghasdeclaredbankruptcy.BothissuesareequivalentinseniorityrankingwithIssueAbeingduein15yearsandIssueBin30years.Whichofthefollowingstatementsismostlikelycorrectregardingrecoveryofthetwoissues?

答案:Bothissueswillberankedparipassuinrightofpayment.TheinterestincomegeneratedbyinvestorsofmunicipalbondissuedintheUnitedStatesismostlikely:

答案:exemptfromfederalincometaxandfromtheincometaxofthestateinwhichthebondsareissued.InmostcountriesincludingtheUnitedStates,debentureisdefinedas:

答案:anunsecuredbondTherepomarginonarepurchaseagreementismostlikelytobehigherwhen:

答案:thematurityoftherepurchaseagreementislong.Whichofthefollowingpricesismostlikelyquotedbydealers?

答案:CleanpriceBesteffortofferings

答案:arelessriskyrelativetounderwrittenofferingsforaninvestmentbankAccruedinterestonabondthatissoldbetweencoupondatesis:

答案:paidtothesellerAllofthefollowingareexamplesofcredit-linkedbondsexcept:

答案:lettersofcreditWhichofthefollowingcouponpaymentstructureswillallowinvestorstobenefitfromanincreaseininterestrates?

答案:Floatingratenotes(FRNs)Whenaninvestmentbankunderwritesabondissue,thebank:

答案:buystheentireissueandtaketheriskofresellingittoinvestorsordealers.Foradiscountrategreaterthanzero,ifthemoneymarketdiscountrateisusedasaproxyforaninvestor’srateofreturn,therateofreturnwillmostlikelybe:

答案:understatedWheninterestratesareforecastedtodecline,aninvestorwillmostlikelyprefera

答案:inversefloatingratenoteGreenAssociatesownsa3%semi-annualcouponpaying,4-yearbondissuewithaparvalueof$10,000thatiscurrentlypricedat$9,783.14.Theannualizedyieldtomaturityoftheissueisclosestto

答案:3.59%Aconvertiblebondhasparvalueof$1,000andiscurrentlypricedat$1,090.Theunderlyingsharepriceis$36andtheconversionratiois30:1.Theconversionconditionforthebondis:

答案:belowparityWhichofthefollowingbestdescribesthemotivationforacorporationtoissuesecuritizedbonds?Securitizationofspecificassetsbyacorporationenablesthecorporationto:

答案:getacreditratingonbondsthatwillresultinalowercostofborrowingConsiderbondsthathavethesameyieldtomaturityandmaturity.Thebondwiththegreatestreinvestmentriskismostlikelytheonesellingat:

答案:premiumWhichofthefollowingproductsprovidesprotectionfrominflation?

答案:LinkersWhichofthefollowingfactorswillmostlikelydrivetherepomarginlower?

答案:ShortersupplyofthecollateralWhichofthefollowingisleastlikelytobeanegativecovenantassociatedwithacoupon-payingcorporatebondissue?

答案:Aprohibitionfrominvestinginlong-termprojectsinemergingmarketcountriesASouthKoreanelectronicscompanyissuedbondsdenominatedinUSdollarsintheUnitedStatesandregisteredwiththeSEC.Thesebondsaremostlikelyknownasa:

答案:foreignbondFromtheperspectiveofaCDOmanager,anarbitragecollateralizeddebtobligationmostlikelydiffersfromatraditionalasset-backedsecuritybecauseitinvolvesthe

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

答案:8.37%Ananalystcollectsthefollowinginformationregardingspotrates:1-yearrate=4%;2-yearrate=5%;3-yearrate=6%;4-yearrate=7%.The2-yearforwardratetwoyearsfromtodayisclosestto:

答案:9.04%Adeclineintheeffectivedurationofacallablebondmostlikelyimpliesthatabond’s:

答案:benchmarkyieldcurvehasshiftedupwards.Thepriorityofclaimsforseniorsubordinateddebtis:

答案:lowerthanforseniorunsecureddebt.Abondhasanannualmodifieddurationof7.140andannualconvexityof66.200.Thebond’syield-to-maturityisexpectedtoincreaseby50basispoints.Theexpectedpercentagepricechangeisclosestto:

答案:–3.49%Aseniorunsecuredcreditinstrumentholdsahigherpriorityofclaimsthanonerankedas:

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

答案:convexityAninvestorwhoownsamortgagepass-throughsecurityisexposedtocontractionriskwhichistheriskthatwheninterestrates

答案:decline,thesecuritywilleffectivelyhaveashortermaturitythanwasanticipatedatthetimeofpurchaseWhichofthefollowingaccountingissuesshouldmostlylikelybeconsideredacharacterwarningflagincreditanalysis?

答案:Significantoff-balance-sheetfinancingTheinvestor’srealizedhorizonyieldmatchestheyield-to-maturityif:

答案:thebondissoldatapriceontheconstant-yieldpricetrajectory.Whichofthefollowingsourcesofshort-termfundingforbanksismostlikelytohavethelowestinterestcost?

答案:CheckingdepositsWhichofthefollowingfactorswillleadanissuertopreferprivateplacementsoverpublicofferings?

答案:FlexibilityWhichofthefollowingisadisadvantagetobondholdersifabondhasasinkingfundprovision?

答案:GreaterreinvestmentriskAportfoliomanagerisconfusedaboutwhethertoinvestinabondissuewithaserialmaturitystructure,oronewithatermmaturitystructure,giveneverythingelseissimilar.Whichofthefollowing,ifintroduced,willmakethemanagerlargelyindifferentbetweenthetwostructures?

答案:AsinkingfundprovisionContingentconvertiblebondsaredescribedmostaccuratelyasthosewhich,ifaspecifiedeventoccurs:

答案:convertautomaticallytoequityFixedincomeclassificationsbygeographymostlikelyinclude:

答案:emergingmarketbonds.Anon-amortizationfixedincomesecurityismostaccuratelydescribedasa:

答案:bulletbondForafullyamortizedbond,theannualpayment,whichincludesboththecouponpaymentandtheprincipalrepayment:

答案:remainsconstantWhichofthefollowingisleastlikelyacharacteristicofTreasuryInflationProtectedSecurities?

答案:ParvalueisadjustedforinflationEachbondcomprisingtheparcurve:

答案:ispricedatparvalue.Afive-yearbulletbondhasaprincipalamountandcouponrateof$1,000and4%,respectively.Themarketinterestrateisassumedtobeconstantat4%overthebond’stermtomaturity.Thebondwillbeissuedandredeemedatpar.TheprincipalpaymentdueinYear2ofthebondissueisclosestto:

答案:$0Theprimarymarketmechanismusedtoofferunregisteredbondswithoutanunderwritingtoalargeinstitutionalinvestorismostlikely:

答案:aprivateplacementAninvestorischoosingbetweentwomoneymarketinstrumentsofthesamecreditrisks.i.180-daycommercialpaperatadiscountrateof7.85%for360-dayyear.ii.180-daybanktimedepositquotedatan-addonrateof8.15%for365-dayyear.Hewillmostlikelychoose:

答案:commercialpaperasitoffers13bpsmoreinannualreturnthanbanktimedeposit.Aconvertiblebondissuehasaconversionpremiumof$50atatimewhentheunderlyingshare’spriceis$35.Theconvertiblehasaparvalueof$1,000andisconvertibleinto80sharesoftheissuer’sstock.Theconvertiblebond’spriceisclosestto:

答案:$2,850Thedifferencebetweenon-the-runandoff-the-runU.S.Treasurysecuritiesisthaton-the-runTreasurysecuritiesare:

答案:themostrecentlyauctionedTreasurysecuritiesineachmaturity,whileoff-the-runTreasurysecuritiesareissuesauctionedpreviously.Acompanyhasissueda15-yearbondwithanotionalprincipalof$350million.Thesinkingfundprovisioncallsfor8%oftheoutstandingprincipalamounttoberetiredinyears8-14withtheoutstandingbalancepaidoffatmaturityin15years.TheoutstandingprincipalbalanceattheendofYear9isclosestto:

答案:$296.24Secondarybondmarkets

答案:facilitatedirecttradingbetweeninvestorsWhichofthefollowingbondstructuresattractsthemoreconservativeclassesofinvestors?

答案:PutablebondThespreadmeasurewhichaccountsforfutureinterestratevolatilityisthe:

答案:option-adjustedspreadArecentlyissuedsovereignbondforagivenmaturityisalsoreferredtoas:

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

答案:DecreasesthenincreasesWhichofthefollowingstatementsaboutbondcallfeaturesisleastaccurate?Embeddedcalloptionsincallablebonds?

答案:Canbevaluedusingthedifferencebetweenthezero-volatilityspreadandthegovernmentspread.WhichofthefollowingismostlikelyanexampleofaEurobond?

答案:AnAustralianborrowerissuingCanadiandollar-denominatedbondsintheUKmarketInamortgagepass-throughsecurity,thepass-throughrate

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

答案:BothwillincreaseInusingmatrixpricingtoestimatetherequiredyieldspreadonanewcorporatebondissue,thebenchmarkrateusedismostlikelytobethe

答案:yieldtomaturityonagovernmentbondwithasimilartimetomaturityA90-daycommercialpaperissueisquotedatadiscountrateof4.75%fora360-dayyear.Thebondequivalentyieldforthisinstrumentisclosestto:

答案:4.87%Whichofthefollowingisleastlikelyareasonthatfloatingratebondsmaytradeatpricesdifferentfromtheirparvalues:

答案:ResettinginterestratesmakesfloatingratebondsmoresusceptibletopriceriskthanresultsfromchanginginterestratesThecurrentyieldfora4.5%coupon,10-yearbond,withamaturityparvalueof$100andcurrentlypricedat$85.70isclosestto

答案:5.25%Aninvestorisleastlikelyexposedtoreinvestmentriskfromowninga(n)

答案:zero-couponbondAjunkbondismostlikelya

答案:high-yieldbondThebid-askspreadforabondmostlikelyconveysinformationabout:

答案:itsliquidity,butnotitscreditquality.Creditspreadsaremostlikelytonarrowduring

答案:economicexpansionsEvaluatinga7%,10-yearbondthatiscallableatparin5years.Couponpaymentcanbereinvestedat7%annually,andthecurrentpriceofthebondis$106.50.Thebondpaysinterestsemiannually.Shouldtheyieldtocall(YTC)oryieldtomaturity(YTM)beanappropriatemeasure?

答案:YTC,sinceYTCislessthanYTMAninvestorwhoiscalculatingthearbitrage-freevalueofaTreasurysecurityshoulddiscounteachcashflowusingthe:

答案:TreasuryspotratethatisspecifictoitsmaturityAfloating-ratenotehasaquotedmarginof20bpsandrequiredmarginof30bps.Ifthereferencerateis2.5%,thenote’scouponratewillberesetto:

答案:2.7%Immediatelyafteritscouponrateisreset,afloating-ratenoteispricedat98.50percentofpar.Itismostlikelythat:

答案:thenote’screditqualityhasdecreasedsinceissuanceOn15December2013,AlphaCorpissueda10-yearcallablebondpayinganannualcouponof8%.Thebondiscallableinwholeorinpartatanytimeafter15December2018.Thistypeofcallablebondismostlikelyreferredtoas

答案:AmericanstyleIfacallablebondhasanoption-adjustedspread(OAS)of75bps,thismostlikelysuggests:

答案:thebondhasazero-volatilityspreadgreaterthan75bpsCentroCorp.recentlyissuedafloating-ratenote(FRN)thatincludesafeaturethatpreventsitscouponratefromfallingbelowaprespecifiedminimumrate.ThisfeatureinanFRNismostlikelyreferredtoasa:

答案:floorWhichindustrycharacteristicmostlikelyhasapositiveeffectonacompany’sabilitytoservicedebt?

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

答案:factor1only.Forahigh-qualitydebtissuerwithalargeamountofpubliclytradeddebt,bondinvestorstendtodevotemostefforttoassessingtheissuer’s:

答案:defaultrisk.Theratingagencyprocesswherebythecreditratingsonissuesaremovedupordownfromtheissuerratingbestdescribes:

答案:notching.Whichofthefollowingisthehighestrankedunsecureddebt?

答案:SeniorunsecuredAmanufacturingcompanyreceivesaratingsupgradeandthepriceincreasesonitsfixed-ratebond.Thepriceincreasewasmostlikelycausedbya(n):

答案:decreaseinthebond’screditspread.Anannualmodifieddurationofafixedratebondis5.75.Althoughthereisnochangeinbenchmarkyieldsbutduetoimprovedfinancialreportingqualityandaratingsupgrade,theflatpriceofthebondhasincreasedfrom98.10to101.65per100ofparvalue.Theestimatedchangeinthecreditspreadofthebondisclosestto:

答案:-62.93bpsAninvestorsellsabondatthequotedpriceof$98.00.Inaddition,shereceivesaccruedinterestof$4.40.Theflatpriceofthebondisequaltothe

答案:agreedonbondpriceexcludingaccruedinterestCreditriskofacorporatebondisbestdescribedasthe:

答案:riskoflossresultingfromtheissuerfailingtomakefullandtimelypayments.Forratingagencies,theprimaryfactorinassigningtheirratingsis:

答案:likelihoodofdefaultLossseverityisbestdescribedasthe:

答案:portionofabond’svalue,includingunpaidinterest,aninvestorlosesintheeventofdefault.Whattypeofriskmostlikelyaffectsaninvestor'sabilitytobuyandsellbondsinthedesiredamountsandatthedesiredtime?

答案:LiquidityWhichofthefollowingfactorsleastlikelydistinguishesinvestment-gradefromhigh-yieldbondissues?

答案:CouponrateWhichofthefollowingcovenantswillprotectunsecuredcreditors’claimsintheeventofdefault?

答案:LimitationsonlienIntheeventofdefault,whichofthefollowingismostlikelytohavethehighestrecoveryrate?

答案:SecondlienThepresenceofanembeddedcalloptionwilldecreasetheeffectivedurationofabond:

答案:onlywheninterestratesarefalling.A5-yearcorporatebondissuedbyStanleyCorpwitha6.25%coupontradesatayieldof5.80%.Duetoarecentheavysupplyofnewbondissues,theyieldofferedonthebondsinstantaneouslyincreasesto6.40%.Thebondhasamodifieddurationof3.8anditsconvexityis41.5.Takingintoaccountconvexity,thereturnimpactarisingfromthechangeinyieldisclosestto:

答案:-2.21%Inabankruptcyproceeding,whentheabsolutepriorityofclaimsisenforced:

答案:creditorswithasecuredclaimhavethefirstrighttothevalueofthatspecificproperty.Whichofthefollowinginvestmentsaremostlybasedonafloatinginterestrate?

答案:Syndicatedorbilateralloans.Thevalueofa10-year,6%coupon$100parvaluebondwithsemiannualpayments,assuminganannualdiscountrateof7%,isclosestto

答案:92.89StedsmartLtdandFignermoLtdarealikewithrespecttofinancialandoperatingcharacteristics,exceptthatStedsmartLtdhaslesspubliclytradeddebtoutstandingthanFignermoLtd.StedsmartLtdismostlikelytohave

答案:highermarketliquidityriskAcreditanalystisevaluatingthecreditworthinessofthreecompanies:aconstructioncompany,atravelandtourismcompany,andabeveragecompany.Boththeconstructionandtravelandtourismcompaniesarecyclical,whereasthebeveragecompanyisnon-cyclical.Theconstructioncompanyhasthehighestdebtlevelofthethreecompanies.Thehighestcreditriskismostlikelyexhibitedbythe:

答案:constructioncompanyDuringbankruptcyproceedingsofafirm,thepriorityofclaimswasnotstrictlyadheredto.Whichofthefollowingistheleastlikelyexplanationforthisoutcome?

答案:ThevalueofsecuredassetswaslessthantheamountoftheclaimsTheriskthatabond’screditworthinessdeclinesisbestdescribedby:

答案:creditmigrationriskIntheeventofdefault,therecoveryrateofwhichofthefollowingbondswouldmostlikelybethehighest?

答案:FirstmortgagedebtAfixedincomeanalystisleastlikelytoconductanindependentanalysisofcreditriskbecausecreditratingagencies:

答案:cannotforeseefuturedebt-financedacquisitionsInordertoanalyzethecollateralofacompanyacreditanalystshouldassessthe:

答案:valueofthecompany’sassetsinrelationtothelevelofdebtIfgoodwillmakesupalargepercentageofacompany’stotalassets,thismostlikelyindicatesthat:

答案:alargepercentageofthecompany’sassetsarenotofhighqualityIntheeventofdefault,debentures’claimswillmostlikelyrank:

答案:belowthatofsecureddebtholdersInordertodeterminethecapacityofacompany,itwouldbemostappropriatetoanalyzethe:

答案:growthprospectsoftheindustryAbondwithexactlynineyearsremaininguntilmaturityoffersa3%couponratewithannualcoupons.Thebond,withayield-to-maturityof5%,ispricedat85.784357per

100ofparvalue.Theestimatedpricevalueofabasispointforthebondisclosestto:

答案:0.0648Whichofthefollowingismostappropriateformeasuringabond’ssensitivitytoshapingrisk?

答案:keyratedurationAninvestorpurchasesabondatapriceaboveparvalue.Twoyearslater,theinvestorsellsthebond.Theresultingcapitalgainorlossismeasuredbycom-paringthepriceatwhichthebondissoldtothe:

答案:carryingvalue.Theinterestrateriskofafixed-ratebondwithanembeddedcalloptionisbestmeasuredby:

答案:EffectivedurationAlimitationofcalculatingabondportfolio’sdurationastheweightedaverageoftheyielddurationsoftheindividualbondsthatcomposetheportfolioisthatit:

答案:assumesaparallelshifttotheyieldcurve.A“buy-and-hold”investorpurchasesafixed-ratebondatadiscountandholdsthesecurityuntilitmatures.Whichofthefollowingsourcesofreturnisleastlikelytocontributetotheinvestor’stotalreturnovertheinvestmenthorizon,assumingallpaymentsaremadeasscheduled?

答案:CapitalgainAninvestorbuysa6%annualpaymentbondwiththreeyearstomaturity.Thebondhasayield-to-maturityof8%andiscurrentlypricedat94.845806per100ofpar.Thebond’sMacaulaydurationisclosestto:

答案:2.83Whichofthefollowingsourcesofreturnismostlikelyexposedtointerestrateriskforaninvestorofafixed-ratebondwhoholdsthebonduntilmaturity？

答案:ReinvestmentofcouponpaymentsAssumingnochangeinthecreditriskofabond,thepresenceofanembeddedputoption:

答案:reducestheeffectivedurationofthebond.Aninvestorbuysathree-yearbondwitha5%couponratepaidannually.Thebond,withayield-to-maturityof3%,ispurchasedatapriceof105.657223per100ofparvalue.Assuminga5-basispointchangeinyield-to-maturity,thebond’sapproximatemodifieddurationisclosestto:

答案:2.78Inasecuritiz