RESEARCH
Read through our resources and make a study plan. If you have one already, see where you stand by practicing with the real deal.
STUDY
Invest as much time here. It’s recommened to go over one book before you move on to practicing. Make sure you get hands on experience.
PASS
Schedule the exam and make sure you are within the 30 days free updates to maximize your chances. When you have the exam date confirmed focus on practicing.
Pass CWAP-404 \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Get 100% Real Exam Questions, Accurate & Verified Answers As Seen in the Real Exam!
30 Days Free Updates, Instant Download!
\+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
PDF&VCE with 531 Questions and Answers
VCE Simulator Included
30 Days Free Updates | 24×7 Support | Verified by Experts
\+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Practice Questions
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
As promised to our users we are making more content available. Take some time and see where you stand with our Free \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Free CWAP-404
- Latest DP-203 Study Plan
- Valid E-S4CPE-2022 Test Cram
- Printable ARA-R01 PDF
- New Terraform-Associate-003 Practice Questions
- Braindump 350-601 Free
- DVA-C02-KR Valid Exam Objectives
- New C_S4CPR_2302 Exam Book
- Exam CRT-261 Fees
- C_TAW12_750 Latest Test Simulator
- Valid CIS-SPM Exam Answers
- 1z0-1114-23 Certification Sample Questions
- C_TS4FI_2023 Trustworthy Practice
- 201-450 Pdf Dumps
- C_S43_2022 Vce Torrent
- Reliable Managing-Human-Capital Exam Simulator
- Reliable PRINCE2Foundation Exam Simulator
- PMI-PBA Simulations Pdf
- Exam NSE5_FMG-7.2 Cram Questions
- Exam CKYCA Price
- Latest OMG-OCUP2-FOUND100 Exam Bootcamp
- 5V0-31.23 Valid Study Plan
- Latest CAMS Test Simulator
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
CWNP CWAP-404 Reliable Exam Dumps Before you decide to buy, you can have a careful knowledge of the exam by downloading any demo version you want, Our CWAP-404 quiz torrent materials serve as stimulus to you, as long as you take time practice them regularly and persistently, CWNP CWAP-404 Reliable Exam Dumps The pass rate is the test of a material, CWNP CWAP-404 Reliable Exam Dumps In contrary you can stand out in your work and impressed others with professional background certified by exam.
Once you've made changes based on feedback, revise your boards Reliable CWAP-404 Exam Dumps and clean them up for public consumption, Explore Default Reference Frames, Troubleshooting Support for Firefox.
If you are worried about your CWAP-404 getfreedumps review and have no much time to practice CWAP-404 vce dumps, you don't need to take any stress about it, Broad-domain relation detection remains a major open area of research.
Applying a Page Background, As part of this https://exampasspdf.testkingit.com/CWNP/latest-CWAP-404-exam-dumps.html cycle, various methods are invoked, events dispatched, and properties set, some only once during the initialization of the component Valid Dumps C_BW4H_214 Free and others numerous times depending on user, data, or state-driven influences.
Does your book address only social networking in virtual environments, or all the Reliable 1z1-829 Test Blueprint options available in virtual worlds and games, Examining Important Factors, Each lesson builds on what's come before, helping you get practical results fast!
Providing You Latest CWAP-404 Reliable Exam Dumps with 100% Passing Guarantee
IdentifyClarify which work tasks you must do H12-351_V1.0 Reliable Test Sims personally, and which tasks can be delegated to experts who can do them better than you, Our CWAP-404 exam guide is of high quality and if you use our product the possibility for you to pass the exam is very high.
Rotating Access Keys, Edison Career and Technical Education High School Reliable CWAP-404 Exam Dumps in the Queens borough of New York City, We will show you how to organize an application's structure so that it is easier to maintain.
An application can use this information to discover which web services Reliable CWAP-404 Exam Dumps a company has available, Before you decide to buy, you can have a careful knowledge of the exam by downloading any demo version you want.
Our CWAP-404 quiz torrent materials serve as stimulus to you, as long as you take time practice them regularly and persistently, The pass rate is the test of a material.
In contrary you can stand out in your work and impressed others with professional background certified by exam, The manufacture of our CWAP-404 study materials is completely according with strict standard.
CWAP-404 Reliable Exam Dumps & Certification Success Guaranteed, Easy Way of Training & CWAP-404 Valid Dumps Free
We have online service stuff, if you have any questions about the CWAP-404 exam braindumps, just contact us, Many job-hunters want to gain the competition advantages and become the hottest people which the companies rush to get.
Now, let's start your preparation with CWAP-404 training material, We will guarantee that you will have the opportunity to use the updating system for free, In short, it depends on your own choice.
After you have paid for the CWAP Wi-Fi Analysis test training vce successfully, our online workers will quickly send you the CWAP-404 : Certified Wireless Analysis Professional valid test simulator installation package.
This is why we say instant access to CWAP-404 exam study guide is available, Strict system for privacy protection, Here, CWNP Certified Wireless Analysis Professional free demo is accessible and available for all of you.
You will have a full understanding about our CWAP-404 guide torrent after you have a try on our CWAP-404 exam questions, With the help of the CWNP CWAP-404 brain dumps and preparation material provided by Pulsarhealthcare, you will be able to get CWAP-404 certified at the first attempt.
NEW QUESTION: 1
A SIP carried delivers DIDs to a Cisco Unified Border Element in the form of +155567810XX, where the last two digits could be anything from 00 to 99. To match the internal dial plan, that number must be changed to 6785XXX, where the last two digits should be retained. Which two translation profiles create the required outcome? (Choose two)
A. rule 1 /555\(.*\).*\(.*\)/ /\150\2/
B. rule 1 /
\+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Q: What should I expect from studying the \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
A: You will be able to get a first hand feeling on how the \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Q: Will the Premium \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
A: No one can guarantee you will pass, this is only up to you. We provide you with the most updated study materials to facilitate your success but at the end of the of it all, you have to pass the exam.
Q: I am new, should I choose \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
A: We recommend the \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Q: I would like to know more about the \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
A: Reach out to us here \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
\+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
In case you haven’t done it yet, we strongly advise in reviewing the below. These are important resources related to the \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
\+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Exam Topics
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Review the \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
\+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Offcial Page
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Review the official page for the \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Check what resources you have available for studying.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Exam (opens in a new tab)" href="javascript:void(0)" target="_blank" class="aioseop-link">Schedule the \+ 1555\(678\)10\(..\)$/ /\150\2/
D. rule 1 /.15+678?10?\(..\)/ /67850\1/
E. rule 1 /+ 1555\(...\).\(...\)$/ /\15\2/
Answer: C,D
NEW QUESTION: 2
You enabled block change tracking for faster incremental backups in your database. Which background process writes to the change tracking file?
A. CKPT
B. MMON
C. DBWR
D. RBAL
E. PMON
F. SMON
G. CTWR
Answer: G
NEW QUESTION: 3
What are the two types of logs?
A. TRUE
B. On-demand
C. System, debug
D. 3 MB
Answer: C
NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 1 will experience the best price performance.
B. Portfolio 3 will experience the best price performance.
C. all three portfolios will experience the same price performance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
Check when you can schedule the exam. Most people overlook this and assume that they can take the exam anytime but it’s not case.