LeaPrep · CFA Level I · Mock Test 1

Fixed
Income.

Topic 6

23 câu hỏi · 3 slide / câu · ~35 phút

Mock: 1
Subject: Fixed Income
Câu hỏi: 23
Format: 3 lựa chọn A/B/C

Nội dung: câu hỏi · hướng dẫn tư duy · đáp án & giải thích

MOCK

Fixed Income

Buổi học hôm nay

Fixed
Income.

Fixed Income · Mock 1 01 / 23

Câu 1 / 23

Bạn có 30 phút nghỉ giải lao trước khi tiếp tục hoàn thành 90 câu hỏi còn lại của bài Mock test 1.

Which of the following covenants is most likely to appear in the indenture for a company's bonds?

(A)The company’s debt-to-equity ratio must not fall below 0.40.
(B)The company’s interest coverage ratio must remain below 2.5x.
(C)The company may not issue additional debt that is senior to this debt.

Fixed Income · Mock 1 01 / 23

Hướng dẫn tư duy · Câu 1

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Restricting additional debt issuance is an example of a negative covenant.
02Higher interest coverage ratios are better, so a requirement that it must be below a specific threshold is unlikely.
03The debt-to-equity ratio as a covenant would likely have a restriction that it cannot be above (rather than below) a certain threshold.

Fixed Income · Mock 1 01 / 23

Đáp án · Câu 1

Đáp án đúng

The company may not issue additional debt that is senior to this debt.

Giải thích

Restricting additional debt issuance is an example of a negative covenant. Higher interest coverage ratios are better, so a requirement that it must be below a specific threshold is unlikely. The debt-to-equity ratio as a covenant would likely have a restriction that it cannot be above (rather than below) a certain threshold.

Fixed Income · Mock 1 02 / 23

Câu 2 / 23

Axioma Group submits a non-competitive bid in a sovereign government debt auction. At the end of the auction, Axioma:

(A)will not receive any securities.
(B)will receive securities, regardless of the auction outcome.
(C)may or may not receive securities, depending on the auction outcome.

Fixed Income · Mock 1 02 / 23

Hướng dẫn tư duy · Câu 2

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Bidders in a sovereign debt auction can submit either competitive or non competitive bids.
02An investor submitting a non-competitive bid agrees to accept the price determined in the auction and always receives securities, regardless of the auction outcome (similar to a market order in equity trading).
03Competitive bidders specify both an acceptable price and the number of securities to be purchased (specifying a price is similar to a limit order).

Fixed Income · Mock 1 02 / 23

Đáp án · Câu 2

Đáp án đúng

will receive securities, regardless of the auction outcome.

Giải thích

Bidders in a sovereign debt auction can submit either competitive or non competitive bids. An investor submitting a non-competitive bid agrees to accept the price determined in the auction and always receives securities, regardless of the auction outcome (similar to a market order in equity trading). Competitive bidders specify both an acceptable price and the number of securities to be purchased (specifying a price is similar to a limit order).

Fixed Income · Mock 1 03 / 23

Câu 3 / 23

An investor holds a 6-year, 3.0% fixed-coupon bond with semiannual payment, trading at par value. The bond's annualized modified duration is 5.6 and annualized convexity is 28. The investor expects interest rates to decline by 54 bps. The expected percentage change in the price of the bond is closest to:

(A)2.98%.
(B)3.02%.
(C)3.07%.

Fixed Income · Mock 1 03 / 23

Hướng dẫn tư duy · Câu 3

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01The expected price change is calculated as follows:
02 $(- AnnModDur \times ΔYield) + [1 / 2 \times AnnConvexity \times {(ΔYield)}^{2}] = (- 5.6 \times - 0.0054) + [1 / 2 \times 28 \times {(- 0.0054)}^{2}] = 0.03024 + 0.00041 = 0.03065 = 3.065 % .$

Fixed Income · Mock 1 03 / 23

Đáp án · Câu 3

Đáp án đúng

3.07%.

Giải thích

The expected price change is calculated as follows:

$(- AnnModDur \times ΔYield) + [1 / 2 \times AnnConvexity \times {(ΔYield)}^{2}] = (- 5.6 \times - 0.0054) + [1 / 2 \times 28 \times {(- 0.0054)}^{2}] = 0.03024 + 0.00041 = 0.03065 = 3.065 % .$

Fixed Income · Mock 1 04 / 23

Câu 4 / 23

A non-callable corporate bond with a coupon of 3% and a YTM of 3.5% is currently trading at 98% of par. If the YTM immediately decreased by 50 bp, the bond's price would increase by 2%. If the YTM immediately increased by 50 bp, the bond's price would decrease by:

(A)2%.
(B)less than 2%.
(C)more than 2%.

Fixed Income · Mock 1 04 / 23

Hướng dẫn tư duy · Câu 4

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Because of the positive convex relationship between bond price and yield
02the decrease in price that results from a 50 bp increase in yield is less than the increase in price that results from an equal-sized decrease in yield.

Fixed Income · Mock 1 04 / 23

Đáp án · Câu 4

Đáp án đúng

less than 2%.

Giải thích

Because of the positive convex relationship between bond price and yield, the decrease in price that results from a 50 bp increase in yield is less than the increase in price that results from an equal-sized decrease in yield.

Fixed Income · Mock 1 05 / 23

Câu 5 / 23

For a bond trading at a discount that has an effective duration of 8.5, the actual price change per 1% change in its yield to maturity:

(A)is less than 8.5%.
(B)is greater than 8.5%.
(C)may be greater or less than 8.5%.

Fixed Income · Mock 1 05 / 23

Hướng dẫn tư duy · Câu 5

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01The actual price change depends on both the duration and convexity of the bond.
02While the convexity of an option-free bond is always positive, the convexity of a callable bond may be negative, so the convexity adjustment may be positive or negative.

Fixed Income · Mock 1 05 / 23

Đáp án · Câu 5

Đáp án đúng

may be greater or less than 8.5%.

Giải thích

The actual price change depends on both the duration and convexity of the bond. While the convexity of an option-free bond is always positive, the convexity of a callable bond may be negative, so the convexity adjustment may be positive or negative.

Fixed Income · Mock 1 06 / 23

Câu 6 / 23

Kantarow Inc. issued a 2% semiannual coupon bond four years ago. Currently, the bond has one year remaining to maturity and is trading at a price of 99.73. Its government benchmark bond, a one-year, 0.90% semiannual coupon bond, is trading at a price of 100.12. The Kantarow bond's G-spread is closest to:

(A)75 bps.
(B)150 bps.
(C)228 bps.

Fixed Income · Mock 1 06 / 23

Hướng dẫn tư duy · Câu 6

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01YTM for the Kantarow bond: N = 1 × 2 = 2
02CPT I/Y = 1.1373 × 2 = 2.2746 ≈ 228 bps YTM for the government benchmark bond: N = 1 × 2 = 2
03CPT I/Y = 0.3896 × 2 = 0.7793 ≈ 78 bps G-spread = 228 bps – 78 bps = 150 bps.

Fixed Income · Mock 1 06 / 23

Đáp án · Câu 6

Đáp án đúng

150 bps.

Giải thích

YTM for the Kantarow bond: N = 1 × 2 = 2; PV = –99.73; PMT = 2 / 2 = 1; FV = 100; CPT I/Y = 1.1373 × 2 = 2.2746 ≈ 228 bps

YTM for the government benchmark bond: N = 1 × 2 = 2; PV = –100.12; PMT = 0.9 / 2 = 0.45; FV = 100; CPT I/Y = 0.3896 × 2 = 0.7793 ≈ 78 bps

G-spread = 228 bps – 78 bps = 150 bps.

Fixed Income · Mock 1 07 / 23

Câu 7 / 23

An analyst estimates the prices that would result from changes in yield to maturity for an option-free, 10-year coupon bond using the bond's modified duration. His price estimates will be:

(A)too low for a YTM increase and too high for a YTM decrease.
(B)too high for a YTM increase and too low for a YTM decrease.
(C)too low for both an increase and decrease in YTM.

Fixed Income · Mock 1 07 / 23

Hướng dẫn tư duy · Câu 7

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Duration is a linear measure
02but the relationship between bond price and yield is actually convex
03causing the estimated price change to always be low if duration alone was used.

Fixed Income · Mock 1 07 / 23

Đáp án · Câu 7

Đáp án đúng

too low for both an increase and decrease in YTM.

Giải thích

Duration is a linear measure, but the relationship between bond price and yield is actually convex, causing the estimated price change to always be low if duration alone was used.

Fixed Income · Mock 1 08 / 23

Câu 8 / 23

An investor purchases a newly issued 15-year bond at a YTM of 8% when the bond's Macaulay duration is 10 years. Shortly after purchase, the market yield on the bonds increases to 9% and remains there until maturity. Assuming the bond does not default, the investor can expect to earn an annual rate of return greater than 8%:

(A)if the bond is sold after 7 years.
(B)if the bond is sold after 12 years.
(C)at no point during the bond’s life.

Fixed Income · Mock 1 08 / 23

Hướng dẫn tư duy · Câu 8

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01If an investor holds the bond for more than 10 years (its Macaulay duration)
02the added reinvestment income will more than offset the price decrease that results from the yield increase.

Fixed Income · Mock 1 08 / 23

Đáp án · Câu 8

Đáp án đúng

if the bond is sold after 12 years.

Giải thích

If an investor holds the bond for more than 10 years (its Macaulay duration), the added reinvestment income will more than offset the price decrease that results from the yield increase.

Fixed Income · Mock 1 09 / 23

Câu 9 / 23

Scott Malooly recently purchased a $100,000 face value, semi-annual coupon bond from a dealer that quoted a price of 105.19. He received an invoice for $107,390. The most likely explanation is that the difference represents:

(A)interest that Malooly owed at settlement.
(B)the commission on the trade.
(C)the change in bond price between the purchase date and the settlement date.

Fixed Income · Mock 1 09 / 23

Hướng dẫn tư duy · Câu 9

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01When a bond trades between two consecutive coupon dates, the seller is entitled to receive interest earned from the previous coupon date until the date of the sale.
02The price paid includes accrued interest and is referred to as the full price.
03The quoted price is the flat price, which does not include accrued interest.

Fixed Income · Mock 1 09 / 23

Đáp án · Câu 9

Đáp án đúng

interest that Malooly owed at settlement.

Giải thích

When a bond trades between two consecutive coupon dates, the seller is entitled to receive interest earned from the previous coupon date until the date of the sale. The price paid includes accrued interest and is referred to as the full price. The quoted price is the flat price, which does not include accrued interest.

Fixed Income · Mock 1 10 / 23

Câu 10 / 23

An investor bought a 3% option-free 12-year bond at a yield to maturity of 4.6% on a semiannual bond basis. If she sells this bond after seven years for 91.41, she will realize:

(A)a capital loss.
(B)a capital gain.
(C)neither a capital gain nor capital loss.

Fixed Income · Mock 1 10 / 23

Hướng dẫn tư duy · Câu 10

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Calculate the constant-yield value of the bond at the end of seven years as: N = 10; I/Y = 4.6 / 2 = 2.3; PMT = 3 / 2 = 1.5; FV = 100; CPT PV = −92.925, which is the carrying value of the bond at the time of sale.
02The sale price per 100 of par value is less than the carrying value by 92.925 − 91.41 = 1.515, which is the capital loss over the seven-year holding period.

Fixed Income · Mock 1 10 / 23

Đáp án · Câu 10

Đáp án đúng

a capital loss.

Giải thích

Calculate the constant-yield value of the bond at the end of seven years as: N = 10; I/Y = 4.6 / 2 = 2.3; PMT = 3 / 2 = 1.5; FV = 100; CPT PV = −92.925, which is the carrying value of the bond at the time of sale. The sale price per 100 of par value is less than the carrying value by 92.925 − 91.41 = 1.515, which is the capital loss over the seven-year holding period.

Fixed Income · Mock 1 11 / 23

Câu 11 / 23

The yield spread on a 5-year corporate bond is most likely to widen as a result of a(n):

(A)increase in the bond’s credit rating.
(B)decrease in market liquidity for the bond.
(C)decrease in the 5-year government note yield.

Fixed Income · Mock 1 11 / 23

Hướng dẫn tư duy · Câu 11

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01A corporate bond's spread to its benchmark is likely to widen if its credit rating is downgraded or its market liquidity decreases.
02Other things equal, a change in yield for the benchmark bond should not affect the yield spread.

Fixed Income · Mock 1 11 / 23

Đáp án · Câu 11

Đáp án đúng

decrease in market liquidity for the bond.

Giải thích

A corporate bond's spread to its benchmark is likely to widen if its credit rating is downgraded or its market liquidity decreases. Other things equal, a change in yield for the benchmark bond should not affect the yield spread.

Fixed Income · Mock 1 12 / 23

Câu 12 / 23

Contingent convertible bonds differ from other bonds in that:

(A)the issuer has the option to exchange them for equity shares.
(B)the bondholder has the option to convert them to equity shares.
(C)they will convert to equity shares if the issuing firm’s equity is less than the regulatory minimum.

Fixed Income · Mock 1 12 / 23

Hướng dẫn tư duy · Câu 12

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Contingent convertible bonds automatically convert to equity if the issuer's equity falls below the minimum percentage stipulated by regulators.
02Issuers are typically banks.
03Neither the issuer nor the bondholder has an option to convert the shares.

Fixed Income · Mock 1 12 / 23

Đáp án · Câu 12

Đáp án đúng

they will convert to equity shares if the issuing firm’s equity is less than the regulatory minimum.

Giải thích

Contingent convertible bonds automatically convert to equity if the issuer's equity falls below the minimum percentage stipulated by regulators. Issuers are typically banks. Neither the issuer nor the bondholder has an option to convert the shares.

Fixed Income · Mock 1 13 / 23

Câu 13 / 23

For securities backed by residential mortgages, the structure that is most likely to provide credit enhancement is:

(A)sequential-pay tranches.
(B)PAC and support tranches.
(C)senior and subordinated tranches.

Fixed Income · Mock 1 13 / 23

Hướng dẫn tư duy · Câu 13

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Credit enhancements, such as a senior/subordinated structure, reapportion the default risk of a mortgage-backed security.
02A sequential-pay structure or a planned amortization class (PAC) tranche combined with one or more support tranches reapportion the prepayment risk of a mortgage-backed security.

Fixed Income · Mock 1 13 / 23

Đáp án · Câu 13

Đáp án đúng

senior and subordinated tranches.

Giải thích

Credit enhancements, such as a senior/subordinated structure, reapportion the default risk of a mortgage-backed security. A sequential-pay structure or a planned amortization class (PAC) tranche combined with one or more support tranches reapportion the prepayment risk of a mortgage-backed security.

Fixed Income · Mock 1 14 / 23

Câu 14 / 23

The practice of notching by securities rating agencies refers to:

(A)adjusting bond ratings for maturity.
(B)using “plus” or “minus” signs with bond ratings.
(C)giving different ratings to bonds issued by the same firm.

Fixed Income · Mock 1 14 / 23

Hướng dẫn tư duy · Câu 14

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Ratings for a company's bonds may be notched up or down relative to that of its senior unsecured debt
02based on an individual bond's seniority and protective covenants.

Fixed Income · Mock 1 14 / 23

Đáp án · Câu 14

Đáp án đúng

giving different ratings to bonds issued by the same firm.

Giải thích

Ratings for a company's bonds may be notched up or down relative to that of its senior unsecured debt, based on an individual bond's seniority and protective covenants.

Fixed Income · Mock 1 15 / 23

Câu 15 / 23

From which data could an analyst calculate the implied 1-year forward rate three years from now? The:

(A)3-year spot rate and the 4-year spot rate.
(B)1-year spot rate and the 3-year spot rate.
(C)3-year and 4-year government bond yields.

Fixed Income · Mock 1 15 / 23

Hướng dẫn tư duy · Câu 15

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01 $3 y 1 y = [{(1 + S_{4})}^{4} / {(1 + s_{3})}^{3}] - 1$
02This calculation requires the 3-year and 4-year spot rates.

Fixed Income · Mock 1 15 / 23

Đáp án · Câu 15

Đáp án đúng

3-year spot rate and the 4-year spot rate.

Giải thích

$3 y 1 y = [{(1 + S_{4})}^{4} / {(1 + s_{3})}^{3}] - 1$

This calculation requires the 3-year and 4-year spot rates.

Fixed Income · Mock 1 16 / 23

Câu 16 / 23

A bond that is trading at 101.3 has an effective duration of 16.4 and an effective convexity of −168. An estimate of the percentage price decrease in this bond as a result of a positive parallel shift in the yield curve of 30 basis points is closest to:

(A)4.9%
(B)5.0%
(C)5.1%

Fixed Income · Mock 1 16 / 23

Hướng dẫn tư duy · Câu 16

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01The approximate percentage change in the bond's price is estimated as:
02 $- 16.4 (0.003) + 0.5 (- 168) {(0.003)}^{2} = - 0.049956 = - 4.9956 % .$

Fixed Income · Mock 1 16 / 23

Đáp án · Câu 16

Đáp án đúng

5.0%

Giải thích

The approximate percentage change in the bond's price is estimated as:

$- 16.4 (0.003) + 0.5 (- 168) {(0.003)}^{2} = - 0.049956 = - 4.9956 % .$

Fixed Income · Mock 1 17 / 23

Câu 17 / 23

A floating rate note with three years to maturity is valued at 101.34 percent of par. For this bond it is most likey that the:

(A)required margin is less than the quoted margin.
(B)required margin is less than the discount margin.
(C)reference margin is less than the discount margin.

Fixed Income · Mock 1 17 / 23

Hướng dẫn tư duy · Câu 17

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01The required margin is the percentage discount rate that would make the bond price equal to its par value.
02The quoted margin is the percentage (of par) that the bond will pay.
03Because this bond is trading at a premium, the required margin must be less than the quoted margin.

Fixed Income · Mock 1 17 / 23

Đáp án · Câu 17

Đáp án đúng

required margin is less than the quoted margin.

Giải thích

The required margin is the percentage discount rate that would make the bond price equal to its par value. The quoted margin is the percentage (of par) that the bond will pay. Because this bond is trading at a premium, the required margin must be less than the quoted margin.

Fixed Income · Mock 1 18 / 23

Câu 18 / 23

A distinguishing characteristic of covered bonds relative to other asset-backed securities is that:

(A)covered bond investors have dual recourse.
(B)covered bonds are set up through a bankruptcy remote entity.
(C)the assets collateralizing covered bonds are removed from the balance sheet of the issuer.

Fixed Income · Mock 1 18 / 23

Hướng dẫn tư duy · Câu 18

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01In contrast with other ABS, a covered bond is not set up through a bankruptcy remote SPE.
02The assets (loans or mortgages) backing covered bonds remain on the issuing entity's balance sheet, and in the event of default the investors have dual recourse to the assets in the cover pool and the general assets of the issuer

Fixed Income · Mock 1 18 / 23

Đáp án · Câu 18

Đáp án đúng

covered bond investors have dual recourse.

Giải thích

In contrast with other ABS, a covered bond is not set up through a bankruptcy remote SPE. The assets (loans or mortgages) backing covered bonds remain on the issuing entity's balance sheet, and in the event of default the investors have dual recourse to the assets in the cover pool and the general assets of the issuer

Fixed Income · Mock 1 19 / 23

Câu 19 / 23

The repo margin in a repurchase agreement refers to the:

(A)annualized percentage return to the lender of funds.
(B)difference between the purchase price and market price of the underlying bond.
(C)difference between the purchase price and the repurchase price of the underlying bond.

Fixed Income · Mock 1 19 / 23

Hướng dẫn tư duy · Câu 19

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01The repo margin is the difference between the amount the lender of funds (buyer of the underlying bond) pays for it and its market price or value.
02This margin offers protection to the repo lender if the value of the bond decreases over the term of the repo agreement.

Fixed Income · Mock 1 19 / 23

Đáp án · Câu 19

Đáp án đúng

difference between the purchase price and market price of the underlying bond.

Giải thích

The repo margin is the difference between the amount the lender of funds (buyer of the underlying bond) pays for it and its market price or value. This margin offers protection to the repo lender if the value of the bond decreases over the term of the repo agreement.

Fixed Income · Mock 1 20 / 23

Câu 20 / 23

The type of securities most likely to rely on active management of portfolio assets to generate their promised cash flows is:

(A)securitized automobile loans.
(B)collateralized debt obligations.
(C)collateralized mortgage obligations.

Fixed Income · Mock 1 20 / 23

Hướng dẫn tư duy · Câu 20

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01Cash flows to service CDOs are generated by the CDO collateral manager's buying and selling of debt obligations in the CDO asset portfolio.

Fixed Income · Mock 1 20 / 23

Đáp án · Câu 20

Đáp án đúng

collateralized debt obligations.

Giải thích

Cash flows to service CDOs are generated by the CDO collateral manager's buying and selling of debt obligations in the CDO asset portfolio.

Fixed Income · Mock 1 21 / 23

Câu 21 / 23

Koho Inc. 's 10-year senior unsecured bonds are currently rated Ba1 by Moody's. If Moody's upgrades Koho's rating by notch, the bonds will:

(A)remain high yield, and the bond’s yield is likely to increase.
(B)become investment grade, and the bond’s yield is likely to decrease.
(C)become investment grade, and the bond’s yield is likely to increase.

Fixed Income · Mock 1 21 / 23

Hướng dẫn tư duy · Câu 21

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01The bonds are currently rated Ba1, which is the highest speculative grade (high yield) rating on Moody's ratings scale.
02A one-notch upgrade would result in a rating of Baa3, the lowest investment grade rating.
03An upgrade in the rating typically results in a higher bond price and therefore lower yield.

Fixed Income · Mock 1 21 / 23

Đáp án · Câu 21

Đáp án đúng

become investment grade, and the bond’s yield is likely to decrease.

Giải thích

The bonds are currently rated Ba1, which is the highest speculative grade (high yield) rating on Moody's ratings scale. A one-notch upgrade would result in a rating of Baa3, the lowest investment grade rating. An upgrade in the rating typically results in a higher bond price and therefore lower yield.

Fixed Income · Mock 1 22 / 23

Câu 22 / 23

A par bond yield curve is constructed from the yields of:

(A)hypothetical bonds.
(B)government bonds trading at par.
(C)corporate bonds trading at or near face value.

Fixed Income · Mock 1 22 / 23

Hướng dẫn tư duy · Câu 22

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01The par yield curve is constructed from the yields of hypothetical bonds at different maturities that would be trading at par given current spot rates.

Fixed Income · Mock 1 22 / 23

Đáp án · Câu 22

Đáp án đúng

hypothetical bonds.

Giải thích

The par yield curve is constructed from the yields of hypothetical bonds at different maturities that would be trading at par given current spot rates.

Fixed Income · Mock 1 23 / 23

Câu 23 / 23

The price value of a basis point for a 7% coupon, semiannual pay, 10-year bond with a $1,000 par value, currently trading at par, is closest to:

(A)$0.71.
(B)$1.42.
(C)$67.10.

Fixed Income · Mock 1 23 / 23

Hướng dẫn tư duy · Câu 23

Đọc đề và định hướng phân tích.

Các bước suy luận then chốt trước khi chọn đáp án.

01The price value of a basis point is the change in price given a 1 basis point change in the discount rate.
02For a 1 bp increase: N = 20; PMT = 35; FV = 1,000; I/Y = 7.01 / 2 = 3.505; CPT → PV = -999.29 $1,000 − $999.29 = $0.71.
03For a 1 bp decrease: N = 20; PMT = 35; FV = 1,000; I/Y = 6.99 / 2 = 3.495; CPT → PV = 1,000.7109 1,000.7109 – 1,000 = 0.7109 PVBP = (0.7103 + 0.7109) / 2 = 0.7106.

Fixed Income · Mock 1 23 / 23

Đáp án · Câu 23

Đáp án đúng

$0.71.

Giải thích

The price value of a basis point is the change in price given a 1 basis point change in the discount rate.

For a 1 bp increase:

N = 20; PMT = 35; FV = 1,000; I/Y = 7.01 / 2 = 3.505; CPT → PV = -999.29

$1,000 − $999.29 = $0.71.

For a 1 bp decrease:

N = 20; PMT = 35; FV = 1,000; I/Y = 6.99 / 2 = 3.495; CPT → PV = 1,000.7109

1,000.7109 – 1,000 = 0.7109

PVBP = (0.7103 + 0.7109) / 2 = 0.7106.

LeaPrep · CFA Level I

Done.
23 câu.

Mock 1 · Fixed Income hoàn tất

Tiếp tục các môn khác tại lesson.leaprep.com

Mock: 1
Subject: FI
Câu đã review: 23
Next: Mock 2 · fi

Practice on platform: leaprep.com/quiz

FixedIncome.

FixedIncome.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Đọc đề và định hướng phân tích.

Done.23 câu.

Fixed
Income.

Fixed
Income.

Done.
23 câu.