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And it’s relatively easy, to boot.kjsgbp wrote:Of course, no one knows what will be on the exam, but I could easily see 2 item sets on derivatives. Seems to have much more testable material than somthing like alternative investments, in my opinion.
Easy in the sense that you need only apply a few general principles (e.g., arbitrage applies, value = PV(what you’ll receive – PV(what you’ll pay), and if you forget a particular formula during the exam, you can work it out.BaseballRedhawks wrote:S2000 - easy? I’d disagree…….. im going to reread your posting…. and review tonight…
Howdy.nulry wrote:Hi s2000 …
I have no idea; it seems superfluous if they’ve already given it to you.nulry wrote:… in mock 2013, the fixed rate are given, but why I no need to calculate the fixed rate of the contract by using Z= 1- discount factor n / sum of discount factor?
Bonds are assumed to pay semiannually, so maybe the author thought that the same is true for swaps. As swaps are OTC contracts, they can pay with any frequency the parties desire. Maybe semiannual payments is common, but I’d expect the vignette to be explicit on that point.nulry wrote:And there didn’t mention how frequent the swap is pay, why it assumed it to pay semi annually?
idk man, even though the topics in FI are definitely hard, the questions in all the mocks so far seem pretty straightforward. but i definitely see the potential of this being a nightmare if the exam creator didn’t have his coffee that morning.Tommy83 wrote:
This is one of the stressful parts of the Level II exam. I point more to the prospect of only one item set on Fixed Income as a source of stress. There’s a lot of complex material in Fixed Income and a new chapter reading that is also complex. Z-spread, OAS, convertibles, the MBS market the initial and effective PAC collars, embedded options, the ABS market, the complexity of the credit analysis models. You can ask some really tough questions on those topics and if there’s only going to be 6 questions on Fixed Income, I will have wasted a lot of time trying to figure that stuff out.
You can’t punt a topic though b/c if you get 2-3 item sets you’re screwed. Bombing an item set and taking a 1/6 really sets you back.
Rest assured, we’re all going to spend a lot of time studying at least a few topics that won’t even show up on the exam. That’s just the name of the game, though.
This is what keeps me up at night. I am scoring well in the mocks but upon my revision, i think what if the question asked this instead of the stated question. Most of the EOC questions are easy but there are some BB questions in the books that i know i would trip up on.blademaster3090 wrote:
idk man, even though the topics in FI are definitely hard, the questions in all the mocks so far seem pretty straightforward. but i definitely see the potential of this being a nightmare if the exam creator didn’t have his coffee that morning.Tommy83 wrote:
This is one of the stressful parts of the Level II exam. I point more to the prospect of only one item set on Fixed Income as a source of stress. There’s a lot of complex material in Fixed Income and a new chapter reading that is also complex. Z-spread, OAS, convertibles, the MBS market the initial and effective PAC collars, embedded options, the ABS market, the complexity of the credit analysis models. You can ask some really tough questions on those topics and if there’s only going to be 6 questions on Fixed Income, I will have wasted a lot of time trying to figure that stuff out.
You can’t punt a topic though b/c if you get 2-3 item sets you’re screwed. Bombing an item set and taking a 1/6 really sets you back.
Rest assured, we’re all going to spend a lot of time studying at least a few topics that won’t even show up on the exam. That’s just the name of the game, though.
Nulry, in the problem u mentioned, Fixed rate was already given as morever it was equity SWAP questions, at times CFAI wants to save your time & wants to test your broader knowledge.nulry wrote:Hi s2000, in mock 2013, the fixed rate are given, but why I no need to calculate the fixed rate of the contract by using Z= 1- discount factor n / sum of discount factor ? And there didn’t mention how frequent the swap is pay, why it assumed it to pay semi annually?
I do agree with you after taking more mock exams. Fixed Income material is tough, but the questions on the 2014 CFA mock weren’t all that difficult. It was my highest scoring topic. We’ll see how the exam goes, though.blademaster3090 wrote:
idk man, even though the topics in FI are definitely hard, the questions in all the mocks so far seem pretty straightforward. but i definitely see the potential of this being a nightmare if the exam creator didn’t have his coffee that morning.