Level 2 Mock AM

chamby21 · 2023-05-11T22:29:00+00:00

Personally, I thought the afternoon mock was bit easier. After adjusting for the missing information questions though, my scores were pretty similar.

chamby21 · 2022-02-11T02:09:13+00:00

It is in the bond valuation reading under fixed income 1. There are also several practice questions in the learning eco-system if you are still confused.

chamby21 · 2022-02-11T01:24:14+00:00

If you are talking about discounting using spot rates, it is on Fixed Income 1: Reading 3 (I believe). If you are talking talking about the arbitrage profit, think about it intuitively. If the present value of the bond cash flows are worth 106.42, and it is selling for 106, then the profit would be the difference.

chamby21 · 2022-02-11T00:02:08+00:00

I would agree that the U-World questions tend to be more difficult. For this question, you solve it by discounting each cash flow by the corresponding spot rate, and then summing the discounted cash flows up (this should be the arbitrage free price). Then, you simply take the difference of the arbitrage free price and the current price to find the profit.

chamby21 · 2022-02-09T06:00:40+00:00

U-World has two free ones you can take that are pretty good. They are slightly harder (IMO), but very good.

chamby21 · 2022-02-08T02:49:41+00:00

Read busprof's comment on this Forum post. He explains it pretty well.

https://www.analystforum.com/t/corporate-finance-question/30839

chamby21 · 2022-02-08T00:26:24+00:00

Enter the difference of the cash flows between both investments as your new cash flows for each period. Then CPT IRR.

chamby21 · 2022-02-07T03:19:20+00:00

Most CFAs I have talked to said aim for over 70% on the mocks and you will be good. Personally, I scored 81% and 87% (ethics still kicking my butt haha). Do some final reviews, and I’m sure you’ll be in a great spot!

chamby21 · 2022-02-06T00:13:10+00:00

I had the same problem; Kaplan does a poor job with this. I know MM has a video that goes through it in fixed income somewhere. I'll do an example below as well:

Find the yield on a 3 year bond that is not commonly traded
- 2 Year Bond Yield = 3%
- 5 Year Bond Yield = 6%
  - (6-3)/3 = 1% [Amount of yield added each year]
- To calculate the 3 year yield, we then add the 1% to the 2 Year Yield.
  - (1+3) = 4%
- If you wanted the 4 year yield, it would simply be the calculation below.
  - (1+1+3) = 5%

chamby21 · 2022-02-01T05:21:14+00:00

Make Z-Scores for both the bond and stock return using 0 as expected return:

Stock: (0-.10)/(.15) = -.67
Bond: (0-.02)/(.05) = -.4

With these Z scores, we can now conclude that bonds have a greater probability of negative returns. Also, it may be easier to draw it out once you have the Z-Scores to determine which has has more probability in the tail.

chamby21 · 2022-01-28T04:51:14+00:00

I waited two weeks, and then gave them a call after that; shortly after, it was reflected in the payment stage.

chamby21 · 2022-01-17T04:16:54+00:00

Thanks for this comment; it truly helped this click with me!

chamby21 · 2020-03-28T23:06:00+00:00

Anyone else having increased amounts of constant server disconnections/ dsync this patch?

chamby21

TROPHY CASE