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Question 1

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The Correct Answer is Below the treasury curve.
If the Treasury yield curve is downward sloping, the theoretical spot rate curve most likely lies:

Question 2

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The Correct Answer is Macaulay duration.
The weighted average of the time to receipt of a bond's cash flows best defines:

Question 3

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The Correct Answer is Increases.
For a fixed-rate bond with a constant yield to maturity, immediately after a coupon payment, the Macaulay duration:

Question 4

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The Correct Answer is Z-spread.
The yield spread that represents a constant spread over a government spot curve is most likely the:

Question 5

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The Correct Answer is Payout is commonly determined by an auction.

Which of the following statements about credit default swaps is most accurate? The:

Question 6

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The Correct Answer is Prepayment provision.

All else being equal, a bond having which of the following embedded options is most likely to result in the highest yield spread over a comparable option-free security?

Question 7

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The Correct Answer is Working capital, operating cash flow, and asset sales.

With respect to high-yield issuer analysis, which of the following best represents the ranking of liquidity sources from strongest to weakest?

Question 8

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The Correct Answer is Upward sloping.

For a given corporate bond issuer, an increase in bid–ask spreads (in yield terms) for long tenor issues most likely translates into a credit curve that is:

Question 9

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The Correct Answer is Senior unsecured debt.

Using the notching process, a bond issue’s credit rating is most likely the same as the issuer’s credit rating if the issue is:

Question 10

Sorry, that's incorrect.
The Correct Answer is Financial leverage than if the lease were classified as an operating lease.

All else being equal, in the first year of a finance lease, a lessee most likely reports greater: