Fixed Income-MBS section-CFAI Eoc no:13 too long!!!!!

[rahul roy]

I think the above question from the CFAI Eoc is too long.We have to create a prepayment schedule and allocate cash flows,interest,principals to various tranches at different maturities……………
Although the problem deals with simple calculations but it is way too long where you have to find the cashflows etc for 48 months.
I donot think such a long question can be asked in the exam.However this is L2 and anything is possible.
What are your opinions??

 

[ro424]

I haven’t done this section yet, but felt the calculations were similarly intensive in Reading 36 (FCF Valuation). I just used an excel s/s to speed it up. The relevant takeaway is to understand the concepts and implementation (as opposed to using pencils and papers and calculators). Need to spend time very efficiently at this stage…

 

[rahul roy]

ro424 wrote:
I haven’t done this section yet, but felt the calculations were similarly intensive in Reading 36 (FCF Valuation). I just used an excel s/s to speed it up. The relevant takeaway is to understand the concepts and implementation (as opposed to using pencils and papers and calculators). Need to spend time very efficiently at this stage…

+1
There are questions in the Eocs that cannot be done without exel.For now,i am just understanding the concepts ignoring the calculations.

 

[Galli]

Funny, I just went through this section and completly skipped those lengthy calculations questions.

 

[rahul roy]

Galli wrote:
Funny, I just went through this section and completly skipped those lengthy calculations questions.

We need some experienced CFA passouts(like green man,s magician,former trader etc) to advice us on this……..