A few final touchups on mocks attractive, Belle, window, likely

Flok

Would appreciate some help in these areas. Thank you.
EQUITY:
41. It seems like justified P/E = intrinsic P/E so I just want to confirm: (1-b)/(r-g) = 1/r + (1/r - 1/ROE)(g/(r-g) = justified P/E = intrinsic P/E. Right? Also, more importantly, why are they saying that American, which has an intrinsic P/E of 8.3 is LESS attractive than Belle which has an intrinsic P/E of 5.7?
FIXED INCOME:
44. Solution says “The narrower the PAC window (labeled Expected Principal Repayment Dates), the more likely an MBS will behave like a bullet corporate bond.” Why? Is it just because a shorter time frame means there’s a higher chance for all principal to come back at once?
45. Solution says “If mortgage rates rise above the contract rate, the expected cash flow improves, but the cash flow is discounted at a higher rate.” Is the rationale for this the graph of an IO (page 128, Book 5 Schweser) where the value/price of an IO increases when rates increase and then at a certain point levels off and decreases because it is being overwhelmed by the higher discount rate?
DERIVATIVES:
52. Statement 4: A newly entered plain vanilla interest rate swap has no current credit risk, but has potential credit risk that will increase steadily over the life of the swap.
Solution: “While there is no credit risk at contract initiation…”
Both Schweser and CFAI books say there is “little” credit risk in the beginning. What’s the correct answer?

bdavi77962

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!

Iginla2010

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!

cchang

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!

JoeyDVivre

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!

Valores

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!

JGovender

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!

LiquidAssets10

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!

Dapper425

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!

segalm

Because, all else equal, you’d prefer the stock with a lower price to earnings.
Yes.
Yes.
None - the swap has zero value to either party, which implies zero credit risk.
Good luck.
I’m so fugging in the zone right now.
WHO WANT WHAT!