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The quickest way to do it is by using linear interpolation, this method can only be used if the bonds come with the same maturity date & have the same coupon payment dates. Another alternative is to use the replicating bond portfolio creation method,....wherein you try and ascertain the face...

Was only able to crack into the 2 standard deviation question on a second attempt. From what I remember,.....what was provided was the value of 2 securities (think it was 40K & 60K) , their individual expected return, volatilities & correlation. I landed up - Calculating the portfolio weighted...

:) May be,....didn't read it that way though.....if it were today, then the text should have simply read by the end of the day.

That is correct,....vaguely remember the answer being 4.xx %

Here is the note.....have a really strange feeling that I may have misunderstood the highlighted portion and could thereby be wrong......don't think that GARP will test candidates on technical details pertaining to the collection of margin.:( Each day all clearinghouse member firms either must...

I chose the limit order option. The reason was more to do with the wording - $5 USD or "better",.....which seems to be in sync with the meaning of a limit order - "the order can be executed only at this price or at one more favourable to the investor" I vaguely remember 2 other...

Overlooked it completely :oops:

Guys,.....how about the variation margin question. I found this to be a slightly tricky one. The calculations seemed pretty straight forward,....as per my workings, margin balance as of the second last day went below the maintenance margin level. The way the question was worded though was...

Gosh,....didn't see any z table :oops::oops:,....where was the z table located in the question paper ?

I landed up skipping the F Stat,....the qualitative questions seemed easy. The lambda question was worked out in exactly the same way that you have mentioned.:) Didn't find any issue with the forward rate question actually - Formula that was used -> Fo = S0*EXP(Rate USD - Rate EUR) Time...

The interest cost is highest for the ITM options which come with the highest deltas. The 90% VAR question caught me off guard - I did not even know what the 1 sided deviate was for 90% confidence,......I thereby landed up performing the calculation using a deviate value of 1.645 (2 sided...

Hello, The way I approached the nominal rate question was as below - a) Individually calculate the nominal rate of interest in both the currencies using -> Real rate of interest + Inflation Rate b) Assuming that X is the quoted currency and Y is the base currency - Apply the formula -> Forward...

I co I couldn't agree more. David's FRM training regime is really comprehensive,.....well laid out study material coupled with question banks which test candidates on a range of concepts that go well beyond the boundaries of the actual exams.Will be enrolling for the part 2 bionic turtle...

Thank you Alex and all the very best with the exam !!

Hi David, Just had a quick query please with respect to the actual exam. Is GARP going to have any issues with respect to candidates who are not able to show the calculation steps on the rough worksheets that have been provided OR who work out the answers in a haphazard manner. On trying a few...

Thank you Nicole. Let it accrue.

Hi David, First and foremost,...thank you for putting up these VAR questions. I am personally finding this topic challenging and getting some of the questions right helps build confidence. Just had a query with regards to the solution in the 4th question Based on the highlighted line, I...

Sorry,...overlooked this bunch of questions in the PDF doc that is there on the study planner. Thank you, Roshan

Please put these questions under the study planner. Thank you, Roshan