Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition
Last Update 3 days ago
Total Questions : 287
Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition is stable now with all latest exam questions are added 3 days ago. Incorporating 8006 practice exam questions into your study plan is more than just a preparation strategy.
8006 exam questions often include scenarios and problem-solving exercises that mirror real-world challenges. Working through 8006 dumps allows you to practice pacing yourself, ensuring that you can complete all Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition practice test within the allotted time frame.
[According to the PRMIA study guide for Exam 1, Simple Exotics and Convertible Bonds have been excluded from the syllabus. You may choose to ignore this question. It appears here solely because the Handbook continues to have these chapters.]
Which of the following is not an approach to attempt to value to a convertible security:
A borrower who fears a rise in interest rates and wishes to hedge against that risk should:
Calculate the net payment due on a fixed-for-floating interest rate swap where the fixed rate is 5% and the floating rate is LIBOR + 100 basis points. Assume reset dates are every six months, LIBOR at the beginning of the reset period is 4.5% and at the end of the period is 3.5%. Notional is $1m.
A fund manager buys a gold futures contract at $1000 per troy ounce, each contract being worth 100 ounces of gold. Initial margin is $5,000 per contract, and the exchange requires a maintenance margin to be maintained at $4,000 per contract. What is the most prices can fall before the fund manager faces a margin call?
Credit risk in the case of a CDO (Collateralized Debt Obligation) is borne by:
A bond with a 5% coupon trades at 95. An increase in interest rates by 10 bps causes its price to decline to $94.50. A decrease in interest rates by 10 bps causes its price to increase to $95.60. Estimate the modified duration of the bond.
Imagine two perpetual bonds, ie bonds that pay a coupon till perpetuity and the issuer does not have an obligation to redeem. If the coupon on Bond A is 5%, and on Bond B is 15%, which of the following statements will be true:
I. The Macaulay duration of Bond A will be 3 times the Macaulay duration of Bond
B.
II. Bond A and Bond B will have the same modified duration
III. Bond A will be priced at less than 1/3rd the price of Bond B
IV. Both Bond A and Bond B will have a duration of infinity as they never mature
A bank holds a portfolio of residential mortgages. An increase in the volatility of mortgage interest rates leads to:
When comparing compound interest rates to equivalent continuously compounded rates of return, the latter will always be:
[According to the PRMIA study guide for Exam 1, Simple Exotics and Convertible Bonds have been excluded from the syllabus. You may choose to ignore this question. It appears here solely because the Handbook continues to have these chapters.]
A long call position in an asset-or-nothing option has the same payoff as:
TESTED 04 Dec 2024
Hi this is Romona Kearns from Holland and I would like to tell you that I passed my exam with the use of exams4sure dumps. I got same questions in my exam that I prepared from your test engine software. I will recommend your site to all my friends for sure.
Our all material is important and it will be handy for you. If you have short time for exam so, we are sure with the use of it you will pass it easily with good marks. If you will not pass so, you could feel free to claim your refund. We will give 100% money back guarantee if our customers will not satisfy with our products.
