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EduPristine>Blog>#CFA Fixed Income: Questions and Answers

#CFA Fixed Income: Questions and Answers

October 29, 2013

When in times of doubt, do you sometimes wish you had immediate help? I have been through many of those moments, especially before an exam! #CFA is complex and has great intricacies annealed into it. For instance, some times I would think about how I ought to plan my study schedule, or perhaps the best books to buy. At that point of time, you might feel that you need some one to guide you and help you. Chartered Financial Analysts are gaining momentum in the world. The demand is increasing too. So naturally, the competiton will increase proportionately.

If you might be having moments of fear or confusion, worry not! This posts and all other such posts on #CFA will give you what you need. Afterall, a friend in need is a friend indeed! Do not hesitate any further and start reading.

Let us proceed to the questions!

Question: sansell0 Oct 27th, 2013 4 02pm
United States d AF Points
CFA Level I Candidate
1.1A P L AtO SawnStit
Hi All I was wondering if you guys could give me your opinion of which calculator to buy when sitting the level 1 exam/ Would you recommend the Texas Instruments BA II Plus or the BA II Plus Professional/ Thanks in advance

Answer: edupristine Oct 28th. 2013 4:30am Partner India 268 AF Points
rital PRISII
Buy anyone.Proffesional has some added benlfits But the benitlts you can not use In CFA exams You can buy 2 Plus 3

Question: HI guys.
stall moor Oct 27th: 2013 7:21am United Kingdom 3AF Points
IIAPLAti) SCHWE SCR
I’m thinking of registering to do the CFA Level 1 exam next June I’m currently part-qualified ACA and will sit my finals in July & November. so I’m thinking of using the free time between Jan – June to study for CFA
I’ve been offered by a friend to buy their 2013 Kaplan study books for LT I’m aware that the syllabus is ‘updated’ from time to time. but I wondered if it MI change so drastically that buying the 2013 notes would be a big mistake? Has anybody done this before?
Thanks

Answer: 4 °dui)! stine ./C” 5 26am Partner mars 268AF Points
You need to buy new one because the percentage change in syllabus is greater than 10 and it does matter

Question: Last post
7 posts / 0 new
1;9 Zniehl5 Oct 26th, 2013 6:43pm United States CM Level I Candidate le) 18 AF Points SCHW(SCR
A fIrm has a constant growth rate 01 7% and Just paid a divident of $625 If the required rate of return is 12%. what will the stock sell for two years from now based on the COM?
Formula = 043/ (k-g) OR Do (141)A3 / (k-g)
Simple question but why do you use 3 as an exponent, I would think if you were goinlg two years out. 01 would be next years dividend and 02 would the second years dividend

Answer: edupristine Oct 28th. 2013 5:47am Partner India 268 *Points
Znien15 wrote-A firm has a constant growth rate 01 7% and just paid a diuident of 56.25. lime required rate of return is 12%. What will the stock sell for two years from now based on the DMA?
Formula 0’3/ (k-g) OR Do (1•0•3
Simple question but why do you use 3 as an exponent? I would think if you were goinig two years out. 01 would be next years dMdend and 02 would the second years dMdend.
The value you have is of third year because you need to find out the price of stock 2 years back
So. think about the formula of GM., here to find out PO we need to divide by (1*Ry3

Question: meeee20 Oct 23rd, 2013 6:52am India 100PFPolnts
instead just enter into a PRA as the pay of will be Me same whatever may be the outcome. is it because while entering a collar u have the liberty to choose different strike rates for the tong call and short putt

Answer: edupristme Om 24th 2013 529am
i Partner mam 2&8 AF Poims
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meeee20 wrote mama jusl em: um a FRA as no pay olwlll be me same mam: may oe me oumome. is u because
vmlk enlorlnq a collar u have Inc lbutylo choose dllmm sflilw M06 lor Inc lonq cal and shod out?
I-ll
Thhklleethatyouare supposing thaunmerestrame nignlvnllgooown andyou needtohedgeoflhat. some
slmegy you MI lolcnl IS …._….$8l the cap and buy me noor.Tne premium amout vlll adjust = 0.No\v ll sounds
Ice 0 cost collar.
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So, if anyone has any further doubts, you can post your questions on the EduPristine forum!

So, if anyone has any further doubts, you can post your questions on the EduPristine forum!

To read more such posts, just follow the link!

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