Notional interest - Study guides, Study notes & Summaries

Counterparties - Answer In interest rate swap financing, two parties, called counterparties, make a contractual agreement to exchange cash flows at periodic intervals single-currency interest rate swap - Answer "Plain vanilla" fixed-for-floating swaps are often just called interest rate swaps. - one counterparty exchanges the interest payments of a floating-rate debt obligation for the fixed rate interest payments of the other counterparty. Both debt obligations are denominated in the ...

CAIA level 1 - Topic 2 Introduction to alts Questions and Answers 100% Accurate 4 types of alternative assets Alternatives are defined by inclusion: Real Assets Hedge Funds Private Equity Structred products Real Assets Direct ownership of non financial assets: - natural resources - commodities - real estate - land - infrastructure - IP (intellectual property) Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:01 / 0:...

Assignment Correct Answer Any direct or indirect transfer or hypothecation of an investment advisory contract by the assignor Who is not an Investment Advisor? Correct Answer A Bank, Lawyer, accountant, engineer, teach whose performance of such services is solely incidental to the practice of his profession, Broker-dealer (commission only)published of any bona fide newspaper, magazine, business publication, rating systems (Moodys, etc.) What does it mean when someone has "Control"? Corre...

Fixed Income LIII Practice Test (Answered) Verified Solution Expected Excess Return (s x t) - (changeins x SD) - (t x p x l) Interpolated Yields 1) Your Bond Interest Rate = (Wi x Duration Bond A) + ((1 - Wi) x Duration Bond B) 2) (w)(int. rate) + (1-w)(int. rate) 3) Your Bond Int. Rate - weighted average interest rate Empirical Duration Duration determined by regression analysis of the historical relationship between security prices and yields Investment-Grade - Default-Risk and ...

Fixed Income LIII Practice Test (Answered) Verified Solution Expected Excess Return (s x t) - (changeins x SD) - (t x p x l) Interpolated Yields 1) Your Bond Interest Rate = (Wi x Duration Bond A) + ((1 - Wi) x Duration Bond B) 2) (w)(int. rate) + (1-w)(int. rate) 3) Your Bond Int. Rate - weighted average interest rate Empirical Duration Duration determined by regression analysis of the historical relationship between security prices and yields Investment-Grade - Default-Risk and ...

Derivative security - correct answer A security that derives its value from the value of some other underlying asset When the value of the underlying asset in a derivative security changes... - correct answer The value of the derivative security itself changes Cash market - correct answer The market for the actual underlying asset In the cash market, assets trade at their___? -...

CFA Level 1 Derivatives - R64 Exam 22 Questions with Answers What is an interest rate swap? - CORRECT ANSWER exchange of one loan for another. notional amounts do not change hands at inception or at termination. only loan payments are made. fixed-for-floating is the normal interest rate swap, AKA plain vanilla swap What are swaps? - CORRECT ANSWER agreements to exchange a series of cash flows on periodic settlement dates over a certain time frame; party with greater liability at the end...

Certified Payroll Professional Exam (CPP) Part 2|95 Questions with Verified Answers Topic - CORRECT ANSWER Definition Knowledge of workers' compensation regulations - CORRECT ANSWER Knowledge of federal tax levy requirements - CORRECT ANSWER Knowledge of wage attachment/garnishment rules (e.g., Consumer Credit Protection Act - Bankruptcy) - CORRECT ANSWER Knowledge of child support withholding order regulations - CORRECT ANSWER Knowledge of medical support order regulation...

CAIA Volume 1 Final Exam 2023 Define investment - CORRECT ANSWER-Investment is deferred consumption List the four major types of real assets other than land and other types of real estate. - CORRECT ANSWER-Natural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - CORRECT ANSWER-Hedge funds, Private Equity, and Structured Products Name the five structures that differe...

What are the two major problems with estimating the beta of a hedge fund using historical return data? Using past data to measure beta causes estimation risk (inaccuracy). Another major problem with estimating beta using historical data is that the true beta being measured may be changing through time. How does "separating alpha and beta" differ from "distinguishing alpha and beta"? Distinguishing alpha and beta involves measurement and attribution and the process of identifying how...