AIWMI Exam CCRA-L2 Topic 1 Question 69 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 69
Topic #: 1

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?

ABoth are incorrect

BBoth are correct

COnly Statement 2 is correct

DOnly Statement 1 is correct

Show Suggested Answer

Suggested Answer: D

by Cyndy at Apr 22, 2023, 03:37 AM

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Verda

4 hours ago

I believe only Statement 2 is correct, as industry analysis helps in understanding industry life cycle.

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Kami

1 days ago

I agree with Justine, analyzing industry risk is crucial for top down approach.

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Justine

8 days ago

I think both statements are correct.

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