fixed-income — CFA Level I Practice Questions

83 free CFA Level I questions on fixed-income: 28 easy, 36 medium, and 19 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn fixed-income from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. Macaulay duration is measured in units of ________, while modified duration is measured in units of ________.
2. If the yield is 0%, what is its modified duration?
3. In the calculation of Macaulay duration, the weights (w_t) applied to each time period t sum to:
4. The modified duration is closest to:
5. For a Vesper Foods bond with a modified duration of 4.5, a 20 basis point increase in yield will result in a p
6. A bond's price increases more when yields fall by 100 bps th… — This property is known as:
7. Which of the following is synonymous with the 'dirty price' of a Vesper Foods bond?
8. Its modified duration is closest to:
9. If all other factors remain constant, which of the following changes will decrease the Macaulay duration of a
10. The most likely effect on the computed price is that:
11. What is the invoice price?
12. If the hedge is based on modified duration instead of effective duration for a callable bond, the hedge will m
13. If yields decrease by 100 basis points, the approximate percentage change in price is:
14. The accrued interest is:
15. Helion Rail has issued a callable corporate bond currently t… — The effective duration of this bond is closest
16. Vesper Foods issues a bond with a 'Call' feature. Compared to an identical 'Option-free' bond, the callable bo
17. Meridian Pack is considering issuing a 'convertible' bond. When calculating the effective duration of a conver
18. Vesper Foods issues a bond at par with a 5% coupon. The bond is callable at 102 in three years. As market inte
19. Meridian Pack issues a three-year annual-pay bond with a 5.0… — The no-arbitrage price of this bond per 100 of
20. Meridian Pack has issued a bond that is both callable and putable. At very high interest rate levels, the effe
21. The bond's approximate modified duration is closest to:
22. A portfolio manager at Meridian Pack notes that during a mar… — This phenomenon is known as:
23. As interest rates rise and approach the put price, the effective duration of the bond will:
24. If the daily yield volatility is 4 basis points (0.04%), what is the estimated 95% one-day parametric VaR?
25. Helion Rail holds a bond that exhibits negative convexity. This bond is most likely a:
26. If yields rise from 4% to 5%, the convexity adjustment to the percentage price change is closest to:
27. A fixed-income desk at Vesper Foods needs to price a non-traded 4-year, 5% annual coupon bond. They observe tw
28. A 5.00% coupon bond with $1,000 par value and 10 years to ma… — The current yield of this bond is closest to:
29. Meridian Pack has a duration gap of +2.5. If market interest rates increase, the investor's realized return ov
30. A portfolio manager observes that a bond's price increases b… — The most likely reason for this asymmetry is: