CFA Level 1 Quant question and answers 2024 verified to pass

CFA Level 1 Quant question and answers 2024 verified to passnominal 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 occur at the beginning of each period PV of Perpetuity - correct answer Payment/interest rate Effect of increase in the frequency of compounding rates - correct answer increases FV, decreases PV