Spring 2016 Q13

Tony88pass

Hi Graham,

Just wondering where on the syllabus does the calculation of portfolio yield here test? Other than this, we know the exam has tested the explicit quantification method as well, anything else you can think of?

Thanks,
Tony

Tony88pass

Also, may I know what you got for the final int rate risk margin using the latest method?

graham

Here's a link to the solution for that problem using the latest method:

• https://battleactsmain.ca/vanillaforum/discussion/373/spring-2016-13

I don't quite understand your first question: "where on the syllabus does the calculation of portfolio yield here test?" (Also, the wiki covers everything I think it testable.)

Tony88pass

Sorry I wasn't clear enough on my first question, so they seem to expect you know how to calculate the yield rate using bond/duration/eff yield, w/o giving it to us directly, does the syllabus show how many ways of calculation of yield rates should we know?

graham

The main problem in this section shows how to do that calculation:

• https://battleactsmain.ca/wiki6c/CCIR.ARinstr#Alphabet_City

There is also a link within that section to an archived article that explains how the yield can calculated if it isn't given. Here's the direct link:

• https://battleactsmain.ca/wiki6c/CIA.Discnt#Calculating_a_Discount_Rate