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NEW QUESTION: 1
Darlene Mainee owns a portfolio which consists of 3 bonds. What is the duration of the bond portfolio?
A. 6.6862
B. 7.0552
C. 7.2661
Answer: C
Explanation:
This calculation is very similar to a Weighted Average Cost of Capital computation. The first step requires that each bond be assessed for its relative weight in the portfolio. The corresponding weight is then multiplied by the bond's duration which provides the bond's contribution to the overall portfolio duration.
Note: While this problem provides the bond's market value (already computed) it could be left to the candidate to determine on an exam. The bond's market value is simply the bond's price (relative to par) multiplied by the corresponding par value.
The detailed computation follows: Total Market Value of Portfolio = Market value of each bond added together = $1,503,668 + $13,554,769 + $27,385,114 =$42,443,551
Next: Compute the relative weight of each bond in the portfolio. Weight of 6.00%, 2,000,000 par value bond in portfolio (duration of9.07) = Market value of Bond /Market Value of Total Portfolio = 0.035
Weight of 4.50%, 14,700,000 par value bond in portfolio (duration of 2.30)= Market value of Bond /Market
Value of Total Portfolio = 0.319
Weight of 9.00%, 20,000,000 par value bond in portfolio (duration of 9.63) = Market value of Bond /Market
Value of Total Portfolio = 0.645
The portfolio's duration equals the weighted average of each bond's duration multiplied by its weight:
0 .035 * 9.07 + 0.319 * 2.30 + 0.645 * 9.63 = 0.3212 + 0.7332 + 6.2117 = 7.2661
NEW QUESTION: 2
Welche Art von Risiko ergibt sich, wenn ein IS-Prüfer ein unzureichendes Prüfverfahren anwendet und zu dem Schluss kommt, dass wesentliche Fehler nicht vorliegen, wenn tatsächlich Fehler vorliegen?
A. Erkennungsrisiko
B. Inhärentes Risiko
C. Geschäftsrisiko
D. Restrisiko
Answer: A
Explanation:
Erläuterung:
Das Erkennungsrisiko ergibt sich, wenn ein IS-Prüfer ein unzureichendes Testverfahren anwendet, und kommt zu dem Schluss, dass keine wesentlichen Fehler vorliegen, wenn tatsächlich Fehler vorliegen.
NEW QUESTION: 3
Intimidation threats to compliance with fundamental principles are described as threats that may occur
A. when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised
B. as a result of the financial or other interests of a professional accountant or of an immediate or close family member
C. when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment
D. when a professional accountant may be deterred from acting objectively by threats, actual or perceived
Answer: D