Nominal risk free - Study guides, Class notes & Summaries

Price change based on convexity correct answer - -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration correct answer - Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration correct answer - [(v-)-(v+)]/[2V0(change in yield)] Future Value correct answer - PV(1+(I/Y)^N) PV correct answer - FV/(1+r)^n PV of perpetuity correct answer - PMT / discount rate Approximate percentage price change of a bond correct answer ...

nominal risk free rate equals... correct answer: real risk free rate + expected inflation required interest rate on a security correct answer: nominal risk free rate + default risk premium + liquidity premium + maturity risk premium EAR or APY correct answer: (1+periodic rate)^m - 1 always higher than annual percentage rates (not compounded) ordinary annuity correct answer: cash flows that occur at the end of each compounding period annuity due correct answer: payments or rec...

Price change based on convexity correct answer: -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration correct answer: Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration correct answer: [(v-)-(v+)]/[2V0(change in yield)] Future Value correct answer: PV(1+(I/Y)^N) PV correct answer: FV/(1+r)^n PV of perpetuity correct answer: PMT / discount rate Approximate percentage price change of a bond correct answer:...

CFA Level 1: Quant question with complete solution 2023 rated A+nominal risk free rate equals... - correct answer real risk free rate + expected inflation required interest rate on a security - correct answer nominal risk free rate + default risk premium + liquidity premium + maturity risk premium EAR or APY - correct answer (1+periodic rate)^m - 1 always higher than annual percentage rates (not compounded) ordinary annuity - correct answer cash flows that occur at the end of each co...

CFA Level 1 Formulas Price change based on convexity - ANSWER--duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - ANSWER-Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - ANSWER-[(v-)-(v+)]/[2V0(change in yield)] Future Value - ANSWER-PV(1+(I/Y)^N) PV - ANSWER-FV/(1+r)^n PV of perpetuity - ANSWER-PMT / discount rate Approximate percentage price change of a bond - ANSWER-(-)(modified duration)(ΔYTM) ...

BUSG 210 Practice Final Exam updated questions with 100% correct answers 2024/2025 Max Weber characterized the private economy as which of the following? - ANSWERS A money economy is a presupposition of bureaucracy. Why do people buy products that are harmful to them? - ANSWERS People desire these products even if they do not need them. To achieve a greater degree of diversity in the workplace, managers' goals should encompass which of the following? - ANSWERS inclusion What is the ...

Nominal risk free rate equals... Correct answer real risk free rate + expected inflation Required interest rate on a security correct answer nominal risk free rate + default risk premium + liquidity premium + maturity risk premium Ear or apy correct answer (1+periodic rate)^m - 1 Always higher than annual percentage rates (not compounded) Ordinary annuity correct answer cash flows that occur at the end of each compounding period Annuity due correct answer payments or receipts occu...

WGU C214 Key Practice Toolkit Exam Questions with Guaranteed Marking Scheme 2024 External risk with ratios - correct answer changes in macro-economic cycle, competitive forces, the technological environment & demographic/societal changes Internal risk with ratios - correct answer financial viability & flexibility of the firm, willingness to continually innovate, the attitude towards compliance with laws and control and company culture Legalities with ratios - correct answer firms wi...

AAMS Module 1-10 Quizzes - Questions and Answers (Complete Solutions) What are the major steps in the asset management process? 1. gather data 2. establish goals 3. analyze information 4. make and implement recommendations 5. monitor Stefan's business plan includes the following goal: "I will contact 50 prospective clients and document this activity in the CRM for tracking purposes." Which primary element of a good goal is missing? This goal is not time-framed. The acronym to remember for g...

Default Risk - Risk that a borrower will not make promised payments Liquidity Risk - Risk of recieving less than fair value for an investment if it must be sold for cash quickly Required Interest Rate on A Security - = Nominal Interest Rate + Default Risk Premium + Liquidity Premium + Maturity Risk Premium Real Risk Free Rate / Nominal Risk Free Rate - - Single period interest rate for a completely riskfree security with no inflation added - Nominal = Real Risk Free Rate + Expected Infla...