Search results

A huge thanks to bionic for helping me clear the exam. It wouldn't have been easy without the notes and videos. @walli26 could you please provide more information on the work experience apart from what is given on the Web page?

Hi @Nicole Seaman Thanks for these current issues questions. Just checking when do you think the study notes might be available for the topics. It will help in quick and easy reference before the exam.

Please add me +91 99400 93041

Failed with 3213

Thanks @David Harper CFA FRM I believe the main concept here is that the value of a FRA is Principal * (Variable rate - Fixed Rate) * (T2-T1). The item in bold depends on whether the FRA holder is long or short. And, the variable rate is the forward rate for that period. In the example above...

Hi @David Harper CFA FRM .. My question is not related to the above and I am using this thread because I did not want to start a new one. My question is on Hull 4.6 (Study notes) Hull 4.6 Assuming that zero rates are as in Problem 4.5 (above), what is the value of an FRA that enables the holder...

Thank @David Harper CFA FRM for the detailed response. Is it fair to conclude that Jensen's alpha is always an ex post value and not an ex ante value? Will the ex ante value always be zero as we invariably calculate it using the CAPM model? In other words as CAPM fails to recognize the...

Hi @David Harper CFA FRM Sorry if this question sounds a little dumb as I am not able to get around this in my head. The expected return in the above example is assumed to be 9% while the expected return calculated per CAPM comes to 6.75%. While calculating Jensen's alpha, shouldn't we...

Hi @David Harper CFA FRM I have a couple of questions 1) On the accrued interest calculation during the "re-purchase" in August. Will the principal pay down of 2% happen on August 9? What I want to understand is that if the principal paydown happens earlier, the accrued interest in August will...

@David Harper CFA FRM Sorry, can you please help me out with the queries above? Looking forward to your guidance

Adding to the above post, I have a question on the make whole call provision: Faboozi says the make whole call price moves inversely with treasury rates - which (as I interpret) is because make whole call price = PV of principal + PV of remaining coupon payment (discounted at treasury rates)...

Have a qn and I am not sure if it makes sense: In a low interest rate environment, will a fixed price callable bond always trade above the call price? For example, based on the call schedule, the call price of the bond is $105 per $100 par value. In a low interest rate environment, while the...

That was very informative as usual @David Harper CFA FRM . Thank you!

Yes @Nicole Seaman .. I created the thread after searching the forum. If you do find a relevant thread, please let me know.

@Nicole Seaman , @David Harper CFA FRM ..Can you please help?

Hi All, newbie here :) My first question is on SPVs and DPCs (I couldnt find a relevant thread and hence starting a new thread). Although, the two are largely irrelevant in today's market, I have the following questions on them: 1. It is mentioned that SPVs and DPCs are rated separately by the...