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Hi everyone, In your experience, what are the likely exam questions related to MBS and mortgages? How deep should I delve into the calculations related to pass through securities etc? Many thanks.

I think there is a mistake in the answer to GARP question 10.20 in book 4. 10.20 The cash prices of 6-month and one-year Treasury bills are 97.0 and 93.0. A 1.5-year and two-year Treasury bond with coupons at the rate of 6% per year sell for 98.5 and 97.5. Calculate the six-month, 12-month...

Hi, What are likely exam questions to do with P1.T4 chapter 6? I've found the GARP reading quite challenging. I'm not sure how this might be tested on the FRM part 1 exam, since the emphasis in the readings was mathematically deriving the models. I'd be curious for your insights. Are there are...

Hi Dave, Do you get the same result as the book for question 19.14? My initial bond price calculation (14 coupon periods, semiannual yield of 3%, coupon = 2) gives a price of 88.7039. Then discounted by three months to 87.4026. The book has something different. Have I missed something here?

Question 16.16: The six-month, 12-month, 18-month, and 24-month zero rates are 5%, 5.5%, 6%, and 6.5% (all measured with semi-annual compounding) respectively. What is the two-year par yield for a bond paying coupons every six months? For the par yield, I keep getting 6.41%, and A= 3.7465...

Hi, This is my first post on this forum. I have a question about the following definition: The basic idea of APT is that investors can create a zero-beta portfolio with zero net investment. What is meant by zero net investment in this context? Thanks!