CFA Level 1 －模考试题(3)（PM）－Q96-100

following, received, 考试题, style

Question 96

An analyst just received the following information for Mythical Interactions, Inc. A senior equity trader in her group wants to know if he should purchase a large block of the stock.

Earnings retention rate at 65%

Required rate of return, ke, of 11%

Return on equity (ROE) of 13%, expected to remain constant

Estimated Sales per share of $175

Estimated gross profit margin of 22%

Estimated depreciation per share of $20

Estimated interest expense per share of $12

Corporate tax rate of 40%

Current market price is $45.50 per share

Based on the assumptions above, which of the following recommendations is most appropriate? The analyst should advise the trader to:

A) purchase the stock. It is undervalued by approximately $8.00.

B) not purchase the stock. It is overvalued by approximately $10.00.

C) purchase the stock. It is undervalued by approximately $14.20.

D) not purchase the stock. It is overvalued by approximately $14.20.

Question 97

Which of the following is least likely an example of internal credit enhancement?

A) Bond insurance.

B) Cash reserve funds.

C) Excess servicing spread accounts.

D) Over-collateralization.

Question 98

If a portfolio manager anticipates a major increase in market interest rates, the most appropriate trading strategy is to purchase:

A) short-maturity bonds with high coupon rates.

B) long-maturity bonds with low coupon rates.

C) high yield bonds with high coupon rates.

D) bonds with high durations.

Question 99

A 12-year, $1,000 face value zero-coupon bond is priced to yield 7.0% on a semiannual basis. The price of the bond, and the amount of implicit interest will the bond pay over its life, are closest to:

Price Interest

A) $438 $562

B) $444 $556

C) $438 $556

D) $444 $562

Question 100

A 7% coupon bond with semiannual coupons has a convexity in years of 80. The bond is currently priced at a yield to maturity (YTM) of 8.5%. If the YTM decreases to 8%, the predicted effect due to convexity on the percentage change in price would be:

A) +20 basis points.

B) +40 basis points.

C) +50 basis points.

D) -50 basis points.