Free 2016-FRR Exam braindumps download (2016-FRR exam dumps Free)

Which one of the following four interest rate related yield curves is used to revalue loan and deposit positions in banks?

Answer(s): C

Which one of the following statements describes Macauley's duration?

The change in value of a bond when yields increase by 1 basis point.
The weighted average life of the bond payments.
The present value of the future cash flows of a bond calculated at a yield equal to 1%.
The percentage change in a bond price when the yields change by 1%.

Answer(s): B

The exercise for an American type option prior to expiration day is virtually certain in the following case:

Answer(s): A

Interest rate swaps are:

Exchange traded derivative contracts that allow banks to take positions in future interest rates.
OTC derivative contracts that allow banks and customers to obtain the risk/reward profile of long-term interest rates without relying on long-term funding.
Exchange traded derivative contracts that allow banks and customers to obtain the risk/reward profile of long-term interest rates without having to use long-term funding.
OTC derivative contracts that allow banks to take positions in series of future exchange rates.

Answer(s): B

What is a common implicit assumption that is made when computing VaR using parametric methods?

The expected returns are constant, but the standard deviation changes over time.
The standard deviations of returns are constant, but the mean changes over time.
The mean of and the standard deviations of returns are both constant.
The mean and standard deviation of returns change periodically in response to crises.

Answer(s): C

Free 2016-FRR Exam Braindumps Financial Risk and Regulation (FRR) Series Questions 51–55 (page: 32)