CFA Level 1 Formulas| 245 Questions | With Complete Solutions
Price change based on convexity correct answer: -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration correct answer: Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration correct answer: [(v-)-(v+)]/[2V0(change in yield)] Future Value correct answer: PV(1+(I/Y)^N) PV correct answer: FV/(1+r)^n PV of perpetuity correct answer: PMT / discount rate Approximate percentage price change of a bond correct answer: (-)(modified duration)(ΔYTM) Nominal Risk Free correct answer: Real Risk Free + expected inflation Required Return correct answer: Nominal risk free + liquidity premiums + default risk premium + maturity risk premium EAR correct answer: [(1+periodic rate)^N ] - 1 EAR continuous correct answer: e^r - 1
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cfa level 1 formulas| 245 questions | with complete solutions
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