SOA Exam 6
- What’s the difference between floating-rate, extendible-reset, and variable-rate bonds?
- What are the advantages/disadvantages of a bond call provision to the issuer? to the investor?
- What’s the difference between a noncallable and a nonrefundable bond?
- What are zero-coupon treasury securities?
- What are the factors that affect a floater’s price?
- What’s the difference between ARM (Adjustable-Rate Mortgage) and “Two-Step” Mortgage?
- What’s the difference between Graduate Payment Mortgage, Growing Equity Mortgage, and Tiered-Payment Mortgage?
- Describe the PSA (Public Securities Association) prepayment model.
- What is the OAS (Option-Adjusted Spread) model?
- Describe each of the following CMO types:
- AD (Accretion-Directed)
- Floater and inverse
- IO and PO
- Describe the 3 approaches in evaluating CMOs.
- What are the characteristics of a convertible bond?
- What are the advantages/disadvantages of a convertible to the issuer? to the investor?
- What are the important GIC (Guaranteed Insurance Contract) characteristics in portfolio construction?
- What are embedded options in GIC and in mortgage?
- What are the advantages/disadvantages of a sinking fund provision to the investor?
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Jan 26, 2004