For a collateralized mortgage obligation (CMO), the first tranche of bonds most likely has the:
A. Highest level of prepayment risk and interest rate risk.
B. Lowest level of prepayment risk and highest level of interest rate risk.
C. highest level of prepayment risk and lowest level of interest rate risk.
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Linda Chin, CFA, is a member of a political group advocating less governmental regulation in all aspects of life. She works in a country where local securities laws are minimal and insider trading is
A. Follow the CFA Code and Standards.
B. Continue her current investment strategy.
C. Disclose her political advocacy to clients.
The tenor of a swap is best described as the:
A. Size of the contract.
B. Original time to maturity.
C. Net amount owed by one party to the other.
Financial ratios alone are least likely helpful to determine a companys:
A. creditworthiness.
B. Past performance.
Current financial condition.
Which of the following share repurchase methods will most likely take the longest amount of time to execute?
A. Dutch auction
B. Fixed price tender offer
C. Open market repurchase