CFAI states that you add it to PRINCIPAL. It sounds crazy, but that was the first thing I looked at once I got home
LanceTX Wrote: ------------------------------------------------------- > Basically, the question gives you the chart with > the scheduled principal payments for tranche A. > But then, if trance C changes to an accrual > tranche, the interest that should have been paid > to tranche C, will actually be added to the > “principal” of trance A. I missed the question, > but after reading the text afterwards it’s > definitely 3200+(interest owed to trance C) I just looked in up in the CFAI text p. 185. 32000 is NOT the right answer. It would be 32000 + (value of accural tranche * interest rate /12)
LanceTX Wrote: ------------------------------------------------------- > CFAI states that you add it to PRINCIPAL. It > sounds crazy, but that was the first thing I > looked at once I got home No it doesn’t. You have to add the interest that tranche C paid to tranche A back to tranche C’s principal. (Not tranche A)
So we at least agree that 32k is not right, which is what i put… Your probably right about the rest… I just remember that I got it wrong
Oh crap. I thought you put something else and were pissed that the answer was 32,000
Haha, nah. Btw mwvt, how do think you did overall?? I felt good about the first half, and even the second half, until I found out by reading later that I made some awful mistakes. I’m afraid I might be back on this side of town next year
I am the same as everybody it seems. AM seemed pretty easy…I think I may have gone above 80% or right around there. PM was killer, although it seems that some of my guesses worked out. That said, there are many questions I missed in the PM. BOP stuff, some stupid FI stuff, a lot of ethics. So my heart will be pumping when I login to get my results.
Yeah same here. My heart dropped when I realized that I was such an idiot and used consolidation rather than equity in one section. I feel like the easier people thought the test was, the worse they will do. It was not easy by any means. The “easy” answers were there on every question, but most of the time they weren’t right.
FI was a good area for me in mocks/samples…not so in the real exam… I messed up the 32 k one…
Did you go for Planned Amortization Class or Target Amortization class?
PAC
PAC
nice
what was the 6th question on this section?: 1)cmo 2)principal payment 3)pac 4)max return for a PO 5)IO -prepayment burnout 6)?
last question was that the PAC collar was not wide enought to guarantee its payment speed
thanks. hopefully just -1 on this, iff the answer to CMO is yes.
6 was less than 6 years if psa above 250
agree with finance03