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In our latest Week in Financial Education (WIFE), Richie's new video helpfully reviews a series of duration questions, including modified, Macaulay, money duration and price value of basis point (PVBP; aka, PV01). Compared to the FRM, the CFA's approach to duration differs only slightly. The...

Welcome to another Week in Financial Education! This week saw some great questions and fascinating insights. I will just highlight the instructive example of a flawed solution in the 2021 practice paper (as usual, the impetus is candidates' justifiable confusion). This one is tricky because the...

New Practice Questions P1.T4.918. Internal versus external credit ratings (de Servigny Ch.2) https://trtl.bz/2vQQWE1 P2.T6.909. Credit exposure metrics continued (expected positive exposure and effective exposure) (Gregory Ch.7) https://trtl.bz/2vZj4ER New YouTube Fixed income: Carry roll...

New Practice Questions P1.T4.917. External credit rating scales (de Servigny Ch.2) https://trtl.bz/2vDjAZe P2.T6.908. Credit exposure metrics (expected exposure and potential future exposure) (Gregory Ch.7) https://trtl.bz/2vBshDj New YouTube Fixed Income: Yield to Maturity (FRM T4-29)...

New Practice Questions P1.T4.916. Predicting sovereign default (Damodaran) https://trtl.bz/2V5E0ZV P2.T6.907. Collateral and the margin period of risk (Gregory Ch.6) https://trtl.bz/2UYVh7b New YouTube Fixed Income: Gross versus net realized return (FRM T4-27) https://trtl.bz/2Vvsc2B Fixed...

New Practice Questions P1.T4.915. Country risk measures and historical instances of sovereign default (Damodaran) https://trtl.bz/2UO5nYf P2.T6.906. Features of a collateralization agreement (Gregory Ch.6) https://trtl.bz/2UQHy23 New YouTube Fixed Income: Infer discount factors, spot...

New Practice Questions P1.T4.914. The components of country risk include political, legal and economic structure (Damodaran) https://trtl.bz/2Gb72x1 P2.T6.905. ISDA Master Agreement and credit support annex (Gregory Ch.6) https://trtl.bz/2GaCDik New YouTube Fixed Income: Arbitrage to exploit...

New Practice Questions P1.T4.913. Key rates versus partial-01s versus forward-buckets (Tuckman Ch.5) https://trtl.bz/2UkQSeo P2.T6.904. Trade compression and termination events (Gregory Ch.5) https://trtl.bz/2UjSZiL New YouTube Fixed Income: Twists are steepening or flattening of the yield...

New Practice Questions P1.T4.912. Key rate exposure technique in multi-factor hedging applications (Tuckman Ch.5) https://trtl.bz/2U4wsGf P2.T6.903. The International Swaps and Derivatives Association (ISDA) Master Agreement (Gregory Ch.4) https://trtl.bz/2U17iIN New YouTube Fixed Income...

New Practice Questions P1.T4.911. Multi-factor interest rate risk models (Tuckman Ch.5) https://trtl.bz/2HBVEMS P2.T6.902. xVA components (Gregory Ch.4) https://trtl.bz/2HI9IVi New YouTube Fixed income: Law of One Price (FRM T4-21) https://trtl.bz/2Wo4JgF TI BA II+ Calculator: Essential...

New Practice Questions P1.T4.910. Barbells and bullets (Tuckman Ch.4) https://trtl.bz/2TBvHoc P2.T6.901. Credit exposure and valuation adjustments (Gregory, Ch.4) https://trtl.bz/2u6HSKp New YouTube Market maker's delta-hedge illustrated (T4-20) https://trtl.bz/2TJ0ejH In the Forum 1. Key...

New Practice Questions P1.T4.909. Effective duration and convexity (Tuckman Ch.4) https://trtl.bz/2UiHeVt P2.T6.900. Counterparty risk and xVA (Gregory Ch.4) https://trtl.bz/2NSnsxX New YouTube Option theta (T4-18) https://trtl.bz/2IWVlyu Hedging (aka, neutralizing) option delta and gamma...

New Practice Questions P1.T4.908. Interest rate factors and the DV01-based hedge (Tuckman Ch.4) https://trtl.bz/2GYXTcU P2.T9.908. What is the Secured Overnight Financing Rate (SOFR)? https://trtl.bz/2BZ1lAZ New YouTube Option delta plus gamma (FRM T4-16) https://trtl.bz/2Nww9xt Option vega...

New Practice Questions P1.T4.907. The coupon effect and carry roll-down scenarios (Tuckman Ch.3) https://trtl.bz/2SJEeow P2.T9.907. The impact of fintech innovations on payment services and the changing landscape of investments (Gomber) https://trtl.bz/2NgXx2l New YouTube Dynamic option delta...

New Practice Questions P1.T4.906. Annuities and yield to maturity (Tuckman Ch.3) https://trtl.bz/2I7W7sh P2.T9.906. The impact of fintech innovations on operations management, deposit services, and lending (Gomber) https://trtl.bz/2BvlYnZ New YouTube How to interpret N(d1) and N(d2) in Black...

New Practice Questions P1.T4.904. Flattening and steepening of rate curves (Tuckman Ch.2) https://trtl.bz/2TkXpRU P2.T9.904. Artificial intelligence and machine learning (AI & ML) in financial services (FSB FIN, part 1 of 2) https://trtl.bz/2MIS9Vn P1.T4.905. Gross versus net bond returns, bond...

New YouTube Binomial option pricing model for equity index, currencies, and futures options (FRM T4-9) https://trtl.bz/2R7Vv5a Foreign currency hedges: on- and off-balance sheet (FRM T3-49) https://trtl.bz/2Mun5bY New Practice Questions P1.T4.903. Spot, forward and par rates (Tuckman Ch. 2)...

New YouTube Binomial tree option price: American-style (FRM T4-8) https://trtl.bz/2T4APgd Foreign exchange exposure for the unhedged balance sheet (FRM T3-48) https://trtl.bz/2FMV3Hp New Practice Questions P1.T4.902. Swap rates versus spot rates (Tuckman Ch. 2) https://trtl.bz/2FC5QVv...

New YouTube Exotic option: exchange option (FRM T3-47) https://trtl.bz/2QwSNWl Binomial option pricing model: up/down jumps based on volatility (FRM T4-7) https://trtl.bz/2HlZtqW New Practice Questions P1.T4.901. Exploiting arbitrage opportunities with a replicating bond portfolio (also...

New YouTube Introduction to binomial option pricing model: two-step (FRM T4-6) https://trtl.bz/2F2jn8B Exotic options: Asian option (FRM T3-46) https://trtl.bz/2R9UmyI New Practice Questions P1.T4.900. Discount function and the Law of One Price (Tuckman, Ch.1) https://trtl.bz/2EWcHbo...