Is my understanding correct?
Is my understanding correct?
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Is my understanding correct?
Is my understanding correct?
Read lesssir, in capital budgeting when you say in first example that 500 crore +20% required return ke baad 184 crore is left and hence project is done. we say here that 20% is required by those who have lend funds ...Read more
sir, in capital budgeting when you say in first example that 500 crore +20% required return ke baad 184 crore is left and hence project is done. we say here that 20% is required by those who have lend funds which include shareholders, debenturehodler or banks. so when 20% is recovered on project , so even if we are left with nothing i.e. instead of 184 it is 0.company should do project because returns toh shareholders ko mil gaya and 184 is above that return. so NPV agar zero hai toh bhi accha hai?? plz can you expalin this?
Read lessQ117Easy way to solve this ans b
Daniela Ibarra is a senior analyst in the fixed-income department of a large wealth management firm. Marten Koning is a junior analyst in the same department, and David Lok is a member of the credit research team. The firm invests ...Read more
Daniela Ibarra is a senior analyst in the fixed-income department of a large
wealth management firm. Marten Koning is a junior analyst in the same department,
and David Lok is a member of the credit research team.
The firm invests in a variety of bonds. Ibarra is presently analyzing a set of bonds
with some similar characteristics, such as four years until maturity and a par
value of €1,000. Exhibit 1 includes details of these bonds.
Exhibit 1: A Brief Description of the Bonds Being Analyzed
Bond Description
B1 A zero-coupon, four-year corporate bond with a par value of €1,000. The wealth
management firm’s research team has estimated that the risk-neutral probability of
default for each date for the bond is 1.50%, and the recovery rate is 30%.
The market price of Bond B1 is €875. The bond is:
A. fairly valued.
B. overvalued.
C. undervalued.
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Bonds I and II both have a maturity of one year, an annual coupon rate of 5%, and a market price equal to par value. The risk-free rate is 3%. Historical default experiences of bonds comparable to Bonds I and ...Read more
Bonds I and II both have a maturity of one year, an annual coupon rate of 5%, and
a market price equal to par value. The risk-free rate is 3%. Historical default experiences of bonds comparable to Bonds I and II are presented in Exhibit 1.
Bond Recovery Rate Percentage of Bonds That Survive and Make Full Payment
I 40% 98%
II 35% 99%
Based on Exhibit 1, the risk-neutral default probability for Bond I is closest to:
A. 2.000%.
B. 3.175%.
C. 4.762%.
Can I apply for scholarship for level 2 if I am already registered for the exams for level 1 on May?
Can I apply for scholarship for level 2 if I am already registered for the exams for level 1 on May?
Read lessParticipation in private placements should be strictly limited to special situations in which there is no potential for even the appearance of conflicts of interest. Therefore, Liang violated the Standard by involving himself in a situation that potentially had the ...Read more
Participation in private placements should be strictly limited to special situations in which there is no potential for even the appearance of conflicts of interest. Therefore, Liang violated the Standard by involving himself in a situation that potentially had the appearance of impropriety.
How is there an appearance of conflict of interest, if the investment doesn’t align with fund’s mandate?
Read lessSir said when forecasting, take SGA as a % of something COGS as % of something else. I am not able to remember where this was or what it was about. Can someone explain and tell me which chapter this ...Read more
Sir said when forecasting, take SGA as a % of something COGS as % of something else. I am not able to remember where this was or what it was about. Can someone explain and tell me which chapter this was part of?
Read lessHi. I’m a part of the CFA level 1 live batch and enrolled for the platinum plus package. I will be appearing for the exam in may. I just wanted to know that when will sir’s audio summary for other ...Read more
Hi. I’m a part of the CFA level 1 live batch and enrolled for the platinum plus package. I will be appearing for the exam in may. I just wanted to know that when will sir’s audio summary for other subjects apart from QM and eco will be uploaded if anyone has any idea bcoz I found them to be of great use while doing QM and eco. Whenever I felt like revising any concept, I used to listen to them and do the questions. And I’ve been used to that and since the audios are not provided for other subjects like Portfolio and Derivatives, I find it a little difficult while revising those subjects.
So just wanted to know if sir will be providing it and if yes then is it going to be anytime soon.
I’m aware that sir is very busy and it’s not an easy task doing that but since we received no clarity in that regard, I’m posting this doubt.
Thanks.
Read lessIn Q2 the answer is given A. My question is why B is wrong?
In Q2 the answer is given A. My question is why B is wrong?
Read less