This blog is an extension of our blog on CFA Webinar on Economics.
Round four of the CFA Webinar Question Answer sessions! This will aid your CFA prep in more ways than one. Find below a recording of the discussion on CFA Equity and Fixed Income.
The answers to the questions are given right here as well.
Find here a brief summary of some of the most important points of CFA Equity and Fixed Income:
“Can you discuss Equity Multiplier?”
“The equity multiplier is a way of examining how a company uses debt to finance its assets. Total assets/ Total stock holder Equities.”
“Please explain Zero Volatility Spread.”
“It the equal amount of spread that we must add to each rate on the treasury spot yield curve in order to make the present value of the risky bond’s cash flow equal to its market price.”
“Could you please tell me the difference between the coupon rate of a callable and a non callable bond?”
“Callable bond always has a greater coupon rate because bond seller has the right to call it back if conditions are favourable. But Non– callable bond has no option so it has a coupon rate lesser than Callable bond.”
“Can you explain the Boot-Strapping concept?”
“The Bootstrapping concept involves discounting by spot rate not by one specified rate.”
“What is reverse stock split?”
“Here stock split means giving 2 for 1. And reverse stock split means giving 1 for 2 just reverse of that.”
“What is Macaulay Duration?”
“Macaulay Duration estimates interest rate sensitivity based on time in years. Macaulay Duration is the earliest measure of duration. Hence, it is not an appropriate measure of interest rate sensitivity of bonds with embedded options.”
To read more, just follow the link to CFA Webinar on Quant.
If you have any queries, comments or questions feel free to post them in the comments section or visit our forum.
There will be subsequent blogs on more questions and discussions that will take place on the following days. So stay tuned for more!
Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc
CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to firstname.lastname@example.org and we will rectify it.
2015 © Edupristine. ALL Rights Reserved.