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AIWMI Exam CCRA-L2 Topic 1 Question 69 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 69
Topic #: 1
[All CCRA-L2 Questions]

The following information pertains to bonds:

Further following information is available about a particular bond 'Bond F'

There is a 10.25% risky bond with a maturity of 2.25% year(s) its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs.

Following are the relevance of Industry Analysis:

Statement 1: Evaluating Industry risk is the first and foremost step for top down approach of analysis.

Statement 2: Industry Analysis is relevant for analyzing the industry life cycle, which is highly important from

the perspective of an investor or lender.

State which is/are correct?

Show Suggested Answer Hide Answer
Suggested Answer: D

Contribute your Thoughts:

Katie
16 days ago
Ah, the joys of bond analysis! I'm feeling rather 'coupon-ed' up on this topic. Let's see, I think I'll go with option B, both statements are correct.
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Vilma
27 days ago
Hmm, this seems like a tricky one. I'll have to really think this through. Hopefully, I don't end up with a 'bond-ache' after this!
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Kristel
1 days ago
Hmm, I think both statements are incorrect.
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Allene
13 days ago
A) Both are incorrect
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Micaela
1 months ago
The industry life cycle part in Statement 2 is definitely correct, but I'm not entirely sure about the first part of Statement 1. Let me double-check the concepts.
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Roslyn
9 days ago
I'm not sure about Statement 1 though, I need to review that further.
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Amos
19 days ago
I agree, that part is crucial for investors and lenders.
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Carissa
22 days ago
I think Statement 2 is definitely correct, it's important to analyze the industry life cycle.
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Arlene
1 months ago
I think both statements are correct. Evaluating industry risk is crucial for a top-down analysis, and industry life cycle is hugely important for investors and lenders. This question seems straightforward to me.
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Delfina
8 days ago
I believe both statements are incorrect.
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Youlanda
13 days ago
I think Statement 1 is incorrect, but Statement 2 is definitely correct.
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Omega
23 days ago
I agree, both statements seem correct to me.
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Verda
2 months ago
I believe only Statement 2 is correct, as industry analysis helps in understanding industry life cycle.
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Kami
2 months ago
I agree with Justine, analyzing industry risk is crucial for top down approach.
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Justine
2 months ago
I think both statements are correct.
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