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1、2022年金融英语考试考前冲刺卷（1）本卷共分为1大题50小题，作答时间为180分钟，总分100分，60分及格。一、单项选择题（共50题，每题2分。每题的备选项中，只有一个最符合题意） 1.While serving as visiting conductor at the University of Edinburgh, U. S. Citizen William Golson purchases a 9.0 percent annual coupon bond denominated in the local currency for 93.0. One year later, befor
2、e his return to the U. S. , he sells the bond for 99.5. Using a holding period return formula he remembers from his undergraduate studies, he calculates his return at 16.7 percent. On the flight home, he is seated next to Kristin Meyer, CFA. She is puzzled because she has heard that similar investme
3、nts yielded negative returns over the same time period. After consulting her financial newspaper, she recalculates Golsons return at a disappointing negative 5.2 percent. Assuming Meyer is correct, which of the following statements is the most likely reason for the difference in the calculated retur
4、ns Golson:（）A. forgot to include the impact of foreign currency appreciation in relation to the dollar.B. forgot to include the impact of foreign currency depreciation in relation to the dollar.C. omitted the impact of inflation.2.A coupon bond:（）).A. does not pay interest on a regular basis, but pa
5、ys a lump sum at maturity.B. can always be converted into a specific number of shares of common stock in the issuing company.C. pays interest on a regular basis (typically semi-annually3.Which of the following are the two most important tools available to the Federal Reserve（）A. Changing the discoun
6、t rate and changing bank reserve requirements.B. Open market operations and changing bank reserve requirements.C. Changing the discount rate and open market operations.4.Which of the following statements about asset backed securities (ABSs) is most accurate（）A. The credit rating of an ABS must be th
7、e same as that of the issuer.B. Residential mortgages represent the largest type of asset that has been securitized.C. There is an inverse relationship between credit enhancements and ratings.5.Benjamin Zoeller and Tara McGonigal are preparing for the Level I CFA examination. Zoeller is studying cre
8、dit spread risk. McGonigal is farther along in her studies, but has forgotten how to determine the default free rate if given the yield on a bond rated BBB + of 9.50 percent and a risk premium of 3.00 percent. What does Zoeller tell her to use for the default free rate（）A. 12.50%.B. 4.50%.C. 6.50%.6
9、.Which of the following statements about fixed income securities is FALSE（）A. The corporate bond sector is more important in the US than in Japan and Germany.B. Coupon interest and capital gains from municipal bonds are tax exempt at the federal level.C. Treasuries and agencies are quoted in 32nds o
10、f a price point.7.Which of the following statements concerning taxable bonds is TRUE（）A. Corporates have the lowest yields, followed by Treasuries, then by corporates, which provide the highest returns.B. Treasuries have the lowest yields, followed by corporates, then by agencies, which provide the
11、highest returns.C. Treasuries have the lowest yields, followed by agencies, then by corporates, which provide the highest returns.8.Jori England, CFA candidate, is studying the value of callable bonds. She has the following information: a callable bond with a call option value calculated at 1.75 (pr
12、ices are quoted as a percent of par) and a straight bond similar in all other aspects priced at 98.0. Which of the following choices is closest to what England calculates as the value for the callable bond（）A. 96.25.B. 99.75.C. 96.0.9.Which of the following statements regarding financing bond purcha
13、ses with margin accounts is FALSE（）A. The required margin percentage changes daily.B. Individuals are more likely than institutions to use margin accounts to finance bond purchases.C. In the U. S. , margin accounts are regulated by the Federal Reserve.10.Which of the following statements about reinv
14、estment risk of a security is least accurate Reinvestment risk:（）A. is minimized with zero-coupon bond issues.B. becomes more problematic for those investors with longer time horizons.C. becomes more problematic when the current coupons being reinvested are relatively small.11.Which of the following
15、 statements about embedded options and yield volatility is FALSE（）A. As yield volatility increases, the value of the call option increases along with the value of the callable bond.B. A call option benefits the issuer and a put option benefits the holder.C. The greater the volatility of the underlyi
16、ng price, the greater the value of the embedded option.12.Which of the following statements regarding a bond being called is TRUE Call prices are known as regular redemption prices when bonds are called at:（）A. under the call provisions specified in the bond indenture.B. at a discount.C. at a premiu
17、m.13.Which of the following investors is least likely to have liquidity risk concerns A:（）A. financial institution heavily involved in the repurchase market.B. portfolio manager for an emerging-market fund.C. trader who invests exclusively in Treasury bonds.14.Which of the following statements regar
18、ding zero-coupon bonds and spot interest rates is TRUE（）A. Price appreciation creates all of the zero-coupon bond’s return.B. Spot interest rates will never vary across the term structure.C. If the yield to maturity on a 2-year zero coupon bond is 6%, then the 2-year spot rate is 3%.15.Which o
19、f the following statements regarding financing bond purchases is TRUE（）A. In margin transactions, the broker borrows from the bank at the call money rate plus a spread.B. The rate the investor pays on the loan in a margin transaction is known as the call money rate.C. Purchasing securities on margin
20、 allows investors to leverage assets and make larger purchases.16.Paul Blackburn is describing mortgage backed securities and makes the following statements: Statement 1: A mortgage pass-through security is formed by pooling a large number of mortgages and issuing certificates that represent ownersh
21、ip shares in the pool. Because each mortgage borrower has the right to prepay the mortgage, the value of a pass-through security behaves as if the security has an embedded put feature. Statement 2: A collateralized mortgage obligation with sequential tranches is created by pooling mortgage pass-thro
22、ugh certificates. Securities are issued in different tranches that have proportionate claims on the cash flows from the pass-through certificates. Are Blackburns statements correct Statement 1 Statement 2 （）A. Correct Correct B. Correct Incorrect C. Incorrect IncorrectA. B. C. 17.Which of the follow
23、ing investors is least susceptible to inflation risk（）A. A financial institution with assets concentrated in fixed-rate mortgages.B. An individual with a 5 year certificate of deposit at a local financial institution.C. The holder of a 15-year bond with a coupon formula equal to the U. S. prime rate
24、 plus 3.25%.18.Which of the following is TRUE about the call feature of a bond It:（）A. stipulates whether and under what circumstances the bondholders can request an earlier repayment of the principal amount prior to maturity.B. describes the credit risk of the bond.C. stipulates whether and under w
25、hat circumstances the issuer can redeem the bond prior to maturity.19.Which of the following statements about balancing reinvestment risk and price risk is TRUE When interest rates: （）A. decline, price risk decreases and reinvestment risk decreases.B. rise, price risk increases and reinvestment risk
26、 increases.C. decline, price risk decreases and reinvestment risk increases.20.Tom Wilkens is a portfolio manager and has a retiree as a client. The client would like to invest in bonds with low interest rate risk. Which bond should Tom choose for his client The bond with a:（）A. 20 year maturity and
27、 a yield to maturity of 5%.B. 10 year maturity and a yield to maturity of 8%.C. 10 year maturity and a yield to maturity of 5%.21.Which of the following circumstances is an example of event risk（）A. A currency devalues due to foreign exchange market forces.B. A local government regulatory agency int
28、roduces more stringent clean-water requirements that will significantly reduce the cash flow of an area paper mill.C. The U. S. Federal Reserve unexpectedly increases interest rates by 100 basis points.22.David Korotkin, CFA and a broker at an investment bank, has a client who is very concerned abou
29、t maintaining purchasing power over the next year. The investor is conservative, and to date has been pleased with a consistent return of 8.00 percent. The banks research department has estimated next years inflation rate at 2.0 percent. The client specifically wants to invest in a fixed-coupon bond
30、. Which of the following statements is most correct If Korotkin purchases a bond with a 10.00 percent coupon, the client:（）A. will realize a real gain.B. will not lose purchasing power.C. may lose purchasing power.23.An investor is considering the purchase of two bonds. One of the bonds is tax-exemp
31、t and yields 4.5% while the other bond is taxable and yield 6.0%. If the two bonds are alike in all other characteristics, the rate that would make the investor indifferent between the two bonds is closest to:（）A. 9.0%.B. 25.0%.C. 27.0%.24.Which of the following best explains the slope of the yield
32、curve（）A. The term spread between the yields of two maturities.B. The credit spread between two securities with different maturities.C. The nominal spread between two securities with different maturities.25.Which of the following statements about the risks associated with investing in bonds is most
33、accurate（）A. Corporate debentures are not subject to prepayment risk.B. Liquidity risk is not relevant if the portfolio manager intends to hold the bond to maturity.C. All fixed income securities except short-term Treasury bills are subject to volatility risk to some degree.26.Which of the following
34、 statements about currency risk is most accurate Generally:（）A. if the home currency appreciates against the foreign currency, each foreign currency unit will be worth more in terms of the home currency.B. appreciation of the foreign currency is good for domestic investors who buy foreign securities
35、.C. if the foreign currency appreciates, the foreign cash flow will be worth less for the domestic investor.27.Which of the following statements regarding mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs) is most likely correct（）A. MBS are created from CMOs.B. Creating
36、CMOs does not reduce the overall prepayment risk of a mortgage pass through security.C. The prepayment option of an MBS benefits the security holder.28.The liquidity preference theory holds that:（）A. rational investors should show no preferences for either short- or long-term debt securities.B. the
37、yield curve should be upward-sloping.C. cash should be preferred to Treasury securities because it is more liquid.29.Which of the following bond price calculations is INCORRECT An investor would pay:（）A. $9684. 38 for a $10000 Treasury note quoted at 96 27/32.B. $941.00 for a $1000 Treasury bond quo
38、ted at 94 10/32.C. $956.25 for a $1000 corporate bond quoted at 95 20/32.30.Which of the following is TRUE about a bond with a deferred call provision（）A. It could be called at any time during the initial call period, but not later.B. It could not be called right after the date of issue.C. Principal
39、 repayment can be deferred until it reaches maturity.31.Which of the following statements about how the features of a bond impact interest rate risk is FALSE （）A. Bond price movements depend upon the direction and magnitude of changes in interest rates.B. All else equal, a longer-term bond is more s
40、ensitive to interest rates than a shorter-term bond.C. An inverse relationship between interest rates and bond prices means that the greater the change in interest rates, the less the change in fixed-coupon bond prices.32.Which of the following statements is TRUE（）A. When a rating agency downgrades
41、a security, the bond’s price usually falls.B. Technical default usually refers to the issuer’s failure to make interest or principal payments as scheduled in the indenture.C. Default risk is important because if a bond issuer defaults, the bondholder likely loses his entire investment.33
42、.While working abroad, U. S. citizen Dirk Senik purchases a foreign bond with an annual coupon of 7.5 percent for 95.5. One year later, the exchange rate between the dollar and the foreign currency remains unchanged and he sells the bond for 97.25, resulting in a holding period return of 9.7 percent
43、. If the foreign currency had depreciated in relation to the dollar, Seniks return would be:（）A. greater than 9.7 percent.B. equal to 9.7 percent.C. less than 9.7 percent.34.A bond portfolio manager owns $ 5 million par valfie of a noncallable bond issue. The duration of the bonds is 5.6 and the cur
44、rent market value of the bonds is $5125000. If yield decline by 25 basis points, the approximate new price of the bonds after the decline in yield will be closest to:（）A. $5053250.B. $5070000.C. $5196750.35.According to the pure expectations theory, an upward-sloping yield curve implies:（）A. interes
45、t rates are expected to decline in the future.B. interest rates are expected to increase in the future.C. longer-term bonds are riskier than short-term bonds.36.Consider three municipal bonds issued by the Greater Holmen Metropolitan Capital Improvement District, a local authority that carries an is
46、suer rating of single-A from the major debt rating agencies. All three bonds have the same coupon rate and maturity date. Series W was issued to finance the rebuilding and expansion of local schools and is backed by the Districts authority to levy property tax. Series X was issued to build a water p
47、urification plant for the region. The District charges fees to the surrounding municipalities for their use of the plant. These fees are the only source of the interest and principal payments on the bonds. Series Y was issued to raise funds for the general use of the District in its ordinary mainten
48、ance projects and is backed by the Districts authority to levy property tax. These bonds carry a third party guarantee of principal and interest payments. What is most likely the order of the market yields on these three bond issues, from highest to lowest（）A. Series Y, Series W, Series X.B. Series W, Series X, Series Y.C. Series X, Series W, Series Y.37.An analyst forecasts that spot interest rates will