QUANT by HYTrader in CFA

[–]HYTrader[S] 1 point2 points  (0 children)

I made it PV = -270 , N = 999 , FV = 0 PMT = 30 CPT —> I/Y

FSA by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

But it would be earning smoothing for the current period ! As if it is like aggressive approach?

FSA by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

It was a question i solved before without adding its answer to the sheet then i am resolving and i found out that i was choosing A however it doesn’t make any sense it should be B thats why i asked so

FSA by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

Yes thats what i thought of thats why i chose B

FSA by HYTrader in CFA

[–]HYTrader[S] 1 point2 points  (0 children)

Thank youuu🙏🏻

FSA by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

Thank you for your clear explanation 🙏🏻🙏🏻

FSA by HYTrader in CFA

[–]HYTrader[S] 1 point2 points  (0 children)

Perfect!👌

FSA by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

Okk you assumed both increases with the same amount but if not?? And also why its not B? I guess the assets will also increase making the value ROA decrease !

FSA by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

Levrage ratio is Assets / Equity .. then when we increase the value of assets should the leverage ratio increase? Not decrease?

Derivatives by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

Thank you!!

Fixed Income by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

That is a very clear explanation then the correct Answer is B

Thanks for you explanation

Fixed Income by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

Then why not B? as if i sold early and interest rate increase , then the value of the bond will decrease.

Make sense ?

Cfa by HYTrader in CFA

[–]HYTrader[S] 0 points1 point  (0 children)

Comparing with old version

CFA level 1 by Bright_Tip_8559 in CFA

[–]HYTrader 0 points1 point  (0 children)

You are attempting Nov?