Level I

Investopedia CFA Exam Prep Quizzer for

Anybody tried it? What do you think? The questions seem more multifaceted than Schweser’s Qbank.  Also, its free which may be helpful to a few of you cheaps out there.

Effective Interest Rate - TVM

Hi Guys,

I am new to the CFA and just beginning my long journey to pass this sucker (and finance really), and I’ve come across more of an understanding problem rather than a how to solve problem.

My question is this: When solving for the Payment of a fixed term amortizing loan, such as a mortgage, I would only divide the annual interest rate (let’s say it is 10%) by 12, to get the monthly interest rate (.0083333). This rate is used to calculate the interest vs. principal payment, etc.

Bond yeild to call

Hello all, I have a question that I’m stumped on, could some one please explain to me why the coupon payment is used as semi-annual but the number of periods used remains at 4 instead of 8?

An analyst observes a Widget & Co 7.125%, 4-year semiannual-pay bond trading at 102.347% of par (Par=$1000). The bond is callable at 101 in 2 years. What is the bond’s yeild-to-call?

A) 3.167

B) 5.664 

C) 6.334

Answer: C

N = 4 FV= 1010 PV= -1023.47 PMT= 35.625 Compute I/Y= 3.167*2= 6.334%

Shouldn’t the N= 8, due to the semi-annual payment?

Federal funds rate vs interest rate vs inflation rate

Hi everybody, 

I got confused when calculating exchange rate for two currencies using inflation rate or interest rate. For example, if at Year 1, the EURO/USD exchange rate is 1:1.2 and if the EURO and USD inflation rates are 5% and 10%, the 1-year forward exchange rate will be (1*105%):(1.2*110%) = 1.05:1.32. That is, the USD is depreciated since its inflation rate is higher. 

CFA LEVEL 1 NAIROBI KENYA

Hi my name is Hilda and am looking for a study partner for CFA l1 June Exam either online or Nairobi.

Review Questions

Hi Guys,

I have studied using the official CFA materials. 

Which sources do you think would be best for practice questions and mocks?

Was thinking of the Elan Qbank, Scheweser Secret Sauce and for mocks i’m open to suggestions!

Very grateful, thanks

looking for study partner for CFA1

hey guys i am looking for a CFA study partner. I have my profile and schedule on “studypal”. They also have a skype plugin for studies. If you too are interested in a study partner or group. please add me there by username Anushree or mail me on “anushree0591@gmail.com”.

Search of Study Partner

Hi….I have been preparing for CFA. CFA can pave your career in Finance. However, I found it quite difficult. I found StudyPal which indeed is a great platform to learn. It has the best mentors and study partners who will keep you motivated and well informed.Besides it is free. Find study partners in your city. Join to start serious preparation for CFA.

My best wishes.

Search of Study Partner

Hi….I have been preparing for CFA. CFA can pave your career in Finance. However, I found it quite difficult. I found StudyPal which indeed is a great platform to learn. It has the best mentors and study partners who will keep you motivated and well informed.Besides it is free. Find study partners in your city. Join to start serious preparation for CFA.

My best wishes.

Arithmetic returns and end of period value

I have a specific question which is not directly related to the CFA curriculum but maybe could be solved with. As a law student I’m stuck with the terms arithmetic return, risk, monthly sharpe ratio, Geometric returns and the ending wealth (or the end of period wealth). 

I will specify: if you look at the perfomance of the Global Stock Index between 1921-1996, you will find (according to the P. Jorion and W. N, Goetznmann’s article in The journal of Finance “Global Stock Markets in the Twentieth Century) that :

Arithmetic return is 5,48

Risk is 15,83

Pages

Subscribe toLevel I