CFA Level 1 Formula | Exam Questions & Expertly Verified Answers, 2026 | 2027 - A

Questions & Expertly Verified



Quiz_________________?

%Δ full bond price -

Answer✅

[-modified duration * ΔYTM] + [1/2 * annual convexity * ΔYTM^2




Quiz_________________?

1y3y meaning -

Answer✅

3-year forward rate 1 year from today




Quiz_________________?

90% confidence interval -

Answer✅

+/- 1.645 SDs




Quiz_________________?

95% confidence interval -

Answer✅

1

, +/- 1.96 SDs




Quiz_________________?

99% confidence interval -

Answer✅

+/- 2.58 SDs




Quiz_________________?

Accounting profit -

Answer✅

Total revenue - total explicit/acctg costs




Quiz_________________?

Accrued itnerest -

Answer✅

Coupon * (days since last coupon/days between coupons)




Quiz_________________?

Add-on yield -

Answer✅

[(Face-price)/price]*(360/n)




Quiz_________________?



2

, Addition rule -

Answer✅

P(A or B) = P(A) + P(B) - P(AB)




Quiz_________________?

Agency RMBS -

Answer✅

Include only conforming loans




Quiz_________________?

Amortized cost security -

Answer✅

Held to maturity




Quiz_________________?

Approximate convexity -

Answer✅

V_+V+-2Vo / (ΔYTM)^2*Vo




Quiz_________________?

Approximate effective convexity -

Answer✅

V_+V+-2Vo / (Δcurve)^2*Vo




3

, Quiz_________________?

Approximate Modified Duration -

Answer✅

(V_ - V+)/2Vo * ΔYTM




Quiz_________________?

Approximate percentage price change of a bond -

Answer✅

(-)(modified duration)(ΔYTM)




Quiz_________________?

Average age -

Answer✅

Accumulated depreciation/Annual depreciation expense




Quiz_________________?

Avg total cost -

Answer✅

total costs/total product




Quiz_________________?

Avg total revenue -

Answer✅



4