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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

11 months ago

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

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Olene

11 months ago

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

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Alaine

11 months ago

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

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Tyisha

11 months ago

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

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Arletta

11 months ago

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

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Wayne

12 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

12 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

12 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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