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AIWMI CCRA-L2 Exam - Topic 9 Question 40 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 40
Topic #: 9

[All CCRA-L2 Questions]

Z spreads in Callable bonds include:

ADoes not include premium for credit risk and call option price for prepayment risk.

BPremium for credit risk and call option price for prepayment risk in included.

CPremium for credit risk is only included.

DPremium for call option price for prepayment risk os only included.

Show Suggested Answer

Suggested Answer: B

by Fabiola at May 05, 2022, 06:13 AM

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Lina

8 months ago

Sounds a bit off to me, I need to double-check that info.

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Olene

8 months ago

Yep, both premiums are included. It's standard practice.

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Alaine

8 months ago

Wait, are you sure about that? I thought it was just credit risk.

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Tyisha

8 months ago

Totally agree, it's crucial for understanding the risk!

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Arletta

8 months ago

Z spreads definitely include the premium for credit risk and call option price.

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Wayne

9 months ago

I'm pretty confident this is a work breakdown structure (WBS). The hierarchical structure and level of detail match what we learned about WBSs.

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Cristy

9 months ago

I've used this feature before, but I'm drawing a blank on which tab it's under. I'll just take my best guess and go with the Insert tab.

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Sang

9 months ago

I remember discussing licensing models, and "Role Based License" doesn't seem to fit here at all. It's definitely "Bring Your Own License," I think.

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