Bond index yields - Study guides, Class notes & Summaries

Money Markets - correct answer Short-term securities, less than 1 year to maturity, are highly marketable, liquid, low risk debt securities. Often considered cash equivalents. Nikkei 225 - correct answer Japan FTSE - correct answer Financial Times Stock Exchange (London) DAX - correct answer Germany CAC...

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 ...

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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 ...

How accurately do GDP portray the economy and why? - Answer-Inaccurately because the scope of GDP measurements can change. Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year, the dollar growth in imports is greater than the dollar growth in domestic consumption. Assuming nothing else has changed, what happened to GDP? - Answer-It went down what is the meaning of each letter in the GDP formula, C+I+G+(X-M)....

Explain when to use & how to convert between percentages & basis points including typical rounding conventions in the asset management industry. - Answers-· Basis points (bps) = 1/100 of 1% or 100 bps = 1% · Use bps for small values less than 1% think about what's quicker & more efficient · NEVER round when doing calculations round to two decimal places (for equity returns & bond yields) when reporting numbers to clients; round dollars to a figure that is easy for the client to understand ...

Which driver weakened the Swiss franc? (C) - ANSWER a) A surprise change in net export expectations b)A surprise change in interest rates expectations c)A surprise change in inflation expectations d)A surprise change in valuation expectations How accurately do GDP portray the economy and why? - ANSWER Inaccurately because the scope of GDP measurements can change. Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. I...

A drop in which of the following measures would typically send a government bond price down? - Creditworthiness A luxury cell phone maker has a high fixed-cost base and a lot of debt. Which stakeholder in the company would you rather be? - A shareholder in a booming economy. A rise in which of the following inputs will increase an absolute valuation? - Earnings estimated According to the Big Mac index screen, which of the following four countries' currency is the most undervalued? - Mexic...

Which driver weakened the Swiss franc? (C) a) A surprise change in net export expectations b)A surprise change in interest rates expectations c)A surprise change in inflation expectations d)A surprise change in valuation expectations How accurately do GDP portray the economy and why? Inaccurately because the scope of GDP measurements can change. Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one ye...

Which of the following qualities of economic indicators do investors prize the most? timeliness of release Why is the release of GDP statistics less interesting to investors than the release of other economic indicators? because GPD statistics are released well after other economic indicators Which of the following important US economic indicators is only available on a quarterly basis? GDP Which economic indicator is most directly linked to unemployment? nonfarm payroll...