49 Free Sample Level 1 CFA Exam Questions and Answers on Fixed Income

Below are 49 Free Sample Level 1 CFA Exam Questions and Answers on Fixed Income for your comfortable experience of exam study. Numerous CFA sample exam questions free are entirely designed from trustworthy study material and nicely formatted with sufficient questions and prompt respondus in order that it is geared towards your practice with pleasure. Besides, the background is simple but inspiring a lot to help you easily grasp the basic concepts. Appealing to this free online is also its excellence in introduction to this topic and bettering your understanding. Finish it to get the maximum points on this topic. Wish those are what you are looking for!
To view full questions and answers, please kindly visit our site: http://cfaexampreparation.com/875/49-free-sample-level-1-cfa-exam-questions-and-answers-on-fixed-income/

Indicates point in time where coupon reinvestment risk and market price risk offset eachother (Duration = 0).

• Effective Duration
• Call Feature
• Macauley Duration
• Duration

capture the effects from changes in a bond's cash flows when the yield changes.Callable bond options reduce Effective Duration

• Effective Duration and Convexity
• Floating-rate notes
• Special purpose vehicle
• Effective Duration

= ½ convexity measure × (ΔYTM)2 × 100

• Effective Duration
• Convexity Adjustment
• Convexity
• Covered Bonds

(MDur x spread) + (.5Convexity spread^2)

• Interpolated Spreads
• Flat Price
• Matrix Pricing
• Approximate % Price Impact

legal entity used to separate assets used as collateral from those of the company seeking financing through an ABS.

• Call Feature
• Special purpose vehicle
• Flat Price
• Commercial Paper

All else equal, has less reinvestment risk and more interest rate risk (duration) than a coupon paying bond

• Zero coupon bond
• Dual Currency Bond
• TIPS Coupon Rate
• Buyer of Bond

Coupon payments denominated in one currency and par value denominated in another.

• Bullet Bond
• Dual Currency Bond
• Zero coupon bond
• Foreign currency swap

Bonds are issued in tranches with varying levels of seniority. Any losses arising from the underlying assets are absorbed first by the tranches with the lowest seniority.

• Forward Rate
• Call Feature
• Matrix Pricing
• Waterfall Structure

I-Spreads are types of Swap Rates

• Interpolated Spreads
• Covered Bonds
• Interest Rate Risk
• Intagible Assets

Refers to a capital structure that includes a high percentage of secured bank debt. A firm with a top-heavy capital structure may be limited in its access to additional bank borrowing, which increases the likelihood of default if the firm encounters financial distress.

• Commercial Paper
• Waterfall Structure
• TIPS Coupon Rate
• Top Heavy Capital Structure

have original maturities of one year or less

• Quoted Margin
• Reverse Repo
• Convexity
• Money Market Yield

Covenant that limits upstream cash

• Expected Loss
• Intagible Assets
• Restricted Payments
• Structured Notes