0 of 22 Questions completed
Questions:
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
0 of 22 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Average score |
|
Your score |
|
Give yourself a pat for attempting this quiz! Do remember to attempt the mock exams provided by CFA Institute to prepare for the kind of questions you might get for the exam!
Basic Features and Coupon Structures
Match the following government sector bonds to their respective class.
(drag the elements to the correct boxes)
Supranational Bond
|
|
Sovereign Bond
|
|
Non-sovereign Bond
|
|
Quasi-government Bond
|
|
Basic Features and Coupon Structures
A bond pays no interest for the first 2 years. It pays a coupon rate of 12% from the third year until maturity on the tenth year, together with the return of principal.
What is the most appropriate classification of this bond based on maturity?
Basic Features and Coupon Structures
A bond pays no interest for the first 2 years. It pays a coupon rate of 12% from the third year until maturity on the tenth year, together with the return of principal.
What is the most appropriate classification of this bond based on coupon structure?
Basic Features and Coupon Structures
The coupon rate of a floating-rate note that makes payments every year in March and September is the 180-day LIBOR + 30 bps.
The 180-day LIBOR in March this year was 1.5%, and 2.0% in September. What is the interest rate that applies for the September coupon?
Basic Features and Coupon Structures
Dominic is a US-based bond investor who wishes to invest in a Mexican-based company. He is wary of foreign exchange risk, yet would like to have the opportunity to participate in the appreciation of the Mexican peso.
Which of the following is the most appropriate choice for Dominic?
Basic Features and Coupon Structures
Match the descriptions to the type of inflation-linked bond.
Capital-indexed bond
|
|
Interest-indexed bond
|
|
Indexed-annuity bond
|
|
Indexed zero-coupon bonds
|
|
Basic Features and Coupon Structures
Match the descriptions to the type of inflation-linked bond.
Capital-indexed bond
|
|
Interest-indexed bond
|
|
Indexed-annuity bond
|
|
Indexed zero-coupon bonds
|
|
Basic Features and Coupon Structures
A 10-year, 7% semi-annual fixed coupon bond has a face value of $1000 and is currently trading at $1050. How much is each coupon payment?
Basic Features and Coupon Structures
Which of the following statements is true regarding US Treasury Inflation Protection Securities (TIPS)?
Legal, Regulatory and Tax Considerations
Which of the following are most likely the characteristics of a bond trustee?
Legal, Regulatory and Tax Considerations
Which of the following is least accurate of unsecured bonds?
Legal, Regulatory and Tax Considerations
Supreme Corp has a vehicle leasing business segment in which it has issued bonds such that the cash flows of the vehicle leasing business goes to the bondholders. The bond issue is structured as an Asset-backed Security (ABS) under a Special Purpose Vehicle.
Last year, the vehicle leasing business did badly and its cash flow could not meet the obligations to the ABS bondholders. What recourse do the ABS bondholders have against Supreme Corp?
Legal, Regulatory and Tax Considerations
Supreme Corp has a vehicle leasing business segment in which it has issued bonds such that the cash flows of the vehicle leasing business goes to the bondholders. The bond issue is structured as an Covered Bond.
Last year, the vehicle leasing business did badly and its cash flow could not meet the obligations to the Covered bondholders. What recourse do the Covered bondholders have against Supreme Corp?
Legal, Regulatory and Tax Considerations
Which of the following are internal credit enhancements?
Legal, Regulatory and Tax Considerations
An ABS is required to make $5 million of payments to its bondholders, but it only has $4 million to pay. The ABS has a credit enhancement feature where a bank proves a letter of credit to the ABS. What is the bank’s obligation in this situation?
Legal, Regulatory and Tax Considerations
Which of the statements is most accurate regarding covenants?
Legal, Regulatory and Tax Considerations
Match the bonds to their jurisdiction. (Drag and drop)
Local Bond
|
|
Foreign Bond
|
|
Eurobond
|
|
Contingency Provisions
A company anticipates that interest rates will fall and wishes to be able to take advantage of cheaper borrowing rates in the future if that happens. Which type of bonds should the company issue now?
Contingency Provisions
Match the description to the style of callable bond. (Drag and drop)
Bermuda style
|
|
European style
|
|
American style
|
|
Contingency Provisions
An investor anticipates that interest rates will fall in the near term. Which type of bonds should the investor buy?
Contingency Provisions
Which of the following statements is most accurate?
Contingency Provisions
A convertible bond has a conversion price of $50. The par value of each bond is $1000, and is currently trading at $1060. The company shares is currently trading at $70, and the bondholder has decided to convert one bond. What is the conversion premium?
Why is the language of the Learning Outcome Statements (LOS) different from the curriculum?
The LOS are protected under the CFA Institute's copyright, and we don't have permission to duplicate them verbatim. Therefore, we've rephrased the LOS and included alphabetical labels (a, b, c, …) to simplify cross-referencing with the original LOS in the curriculum when needed.
Now available for all Level I topics! Try it now!
Enter a search term (e.g. ‘LIFO reserve’), or bookmark the glossary page!
This refund processing fee is to compensate us for the payment processing fee that we paid when you made the purchase.
Are you a CFA Level I candidate, or someone who is exploring taking the CFA exam? Four years ago, I was in your shoes. I am a Computer Engineering graduate and have been working as an engineer all my life. Having developed a keen interest in finance, I decided on a career switch to the finance field and enrolled into the CFA program at the same time.
Adjusting to the drastic career change was tough. I naturally neglected the preparation for my Level I exam in June 2014. It was not until the middle of March 2014 that I realized I only had a little more than 2 months to the exam. To compound my problems, I basically did not have a preparation strategy. Having no background in finance at all, I tried very hard to read the curriculum from cover to cover, but eventually that fell flat. I can still recall the number of times I dozed off while studying, or just going back and forth trying to understand even the simplest concept. My mind simply could not keep up after a hard day at work.
Does all these sound familiar to you? Well, take heart. No matter how bleak it seems, at least sit for the exam and treat it as a learning experience. That was basically my attitude as I burrowed through my exam prep with toil and stress. By God’s grace, I did pass my Level I exam in June 2014. It was an experience I would not want to revisit though.
For the Level II exam, I endeavoured not to repeat the mistakes I made. Based on the Pareto 80/20 principle, I learnt to extract the most essential bits from the curriculum enough to give me that 80% result to pass. Being a visual learner, I took notes and summaries in pictorial form. Instead of reserving huge segments of time to study, I carved out pockets of time to learn and practise – accommodating to my full-time job. I managed to pass my Level II and Level III exams consecutively with considerably less effort and stress than when I did my level I.
I love the CFA Program and truly value the skills and ethics that are imparted to make me a better finance professional. My desire is to help candidates who are keen to pursue this path to do so in the most effective and painless process as possible – based on the lessons that I learnt as a candidate. I have set up PrepNuggets with the vision to revolutionise learning by using technology, catering to the short attention span that we can afford. If this makes sense to you, join the PrepNuggets community by signing up for your free student account. I am confident that the materials that we have laboriously crafted will bring you closer to that dream pass with just that 20% effort. Let us do the hard work for you.
Regards,
Keith Tan, CFA
Founder and Chief Instructor
PrepNuggets
Keith is the founder and chief instructor of PrepNuggets. He has a wide range of interests in all things related to tech, from web development to e-learning, gadgets to apps. Keith loves exploring different cultures and the untouched gems around the world. He currently lives in Singapore but frequently travels to share his knowledge and expertise with others.
Have you ever gotten stuck in your study because you can’t remember a formula, or what a specific term means? Now, say goodbye to scanning through all the videos and ploughing through pages and pages just to find what you are looking for. All the important formulas, definitions and diagrams you need for the exam are now at your fingertips at prepnuggets.com/glossary.
What’s more, these quick references are deeply integrated in our lessons, so you get a good idea of what the lesson covers even before watching the video. The references also point you to specific video lessons where it is covered, so you can quickly access the corresponding video to learn more about the term.
Available now for all Level I topics, this service is exclusive for our Premium and Pro members only. We will progressively add the rest of the topic areas over the next few months.
We think this is a game-changer for your CFA success!
Thank you for purchasing one of our courses on Udemy! Now that you have experienced the PrepNuggets way of learning, are you ready to take your exam prep to the next level with us?
We have an irresistible offer for you to upgrade to our Level I Premium Membership, where you will gain full access to ALL 10 topical courses under the CFA Level I curriculum.
Simply log in to any of our courses on Udemy, and head to the last lecture titled ‘BONUS: Continue Your Exam Prep With Us!‘. You will find the exclusive link to sign up for this offer!
[fvplayer id=”3″]
On the 1st of March 2018, we took a bold step of faith to put our Financial Reporting and Analysis (FRA) course on Udemy.
For those of you who are new to Udemy, it is the world’s largest marketplace for online courses. Think of it like the EBay of online courses.
So imagine our trepidation in pitting our course in this highly competitive platform, against the many CFA prep providers already entrenched on the platform.
Overwhelming.
Yes, that’s the word that aptly describes the response to our course from the Udemy community.
The “Best Seller” tag from Udemy is attached to only one best selling course in its category. In just 1 month, our FRA course became the best selling CFA course on the platform. If you do a search for ‘CFA Level 1’, our course comes out on top in the search rankings.
Since the launch on 1 March, we have had more than 250 paid enrolments. While we are heartened by this figure, nothing beats knowing that our course has reached 50 countries around the world! It was simply heartwarming to receive messages from students from countries we barely know about, telling us how much they love the course and their wish that we would produce more of such courses. This certainly spurs us on to produce more materials to ease the burden of CFA candidates worldwide.
As of today, our course has a high average rating of 4.8 out of 5.0. 74% of the reviewers gave us 5 stars! We take this as endorsement that we are doing things right, and will continue in using the Pareto principle approach for our course materials. There are, of course, constructive feedback as well, and we aim to incorporate some of the feedback in producing the upcoming courses.
We are working hard to bring more of our courses to Udemy! We realise some candidates prefer to purchase courses as they need individually, so we endeavour to give more options to our potential students. Check out our Udemy Courses Page to find out which of our courses are available on Udemy for your purchase.
If you have purchased our course on Udemy and would like to continue with the PrepNuggets study approach for other topics, we have an awesome upgrade offer to Premium membership for you!
[theme-my-login show_reg_link=”0″]
[theme-my-login default_action=”register” show_title=”false”]