CFA 2019 Schweser - Level 1 SchweserNotes Book 5: FIXED INCOME, DERIVATIVES, AND ALTERNATIVE INVESTMENTS 5

SCHWESERNOTESTM 2019 LEVEL I CFA® BOOK 5: FIXED INCOME, DERIVATIVES, AND ALTERNATIVE INVESTMENTS The study tool that started it all is taking CFA® exam prep to the next level. A favorite among CFA candidates for nearly 30 years, SchweserNotesTM is a key component as you prepare for the CFA exam and the core element to our Study Program. Absorbing the CFA curriculum in its entirety is no simple task. Make the most of your study time with clear, exam-focused study notes and examples that cover every Learning Outcome Statement in the most effective manner possible. More than just textbooks. SchweserNotesTM were first introduced in 1990 and quickly took off as a “must have” for CFA candidates. And although they are still available as physical books, as technology and candidate needs have evolved, so have SchweserNotesTM: SchweserNotesTM eBooks are now included with each order of the Notes, making it easier for you to study on-the-go. Contents......Page 2 List of pages......Page 4 Learning Outcome Statements (LOS)......Page 9 Module 50.1: Bond Indentures, Regulation, and Taxation......Page 16 Module 50.2: Bond Cash Flows and Contingencies......Page 22 Key Concepts......Page 31 Answer Key for Module Quizzes......Page 33 Module 51.1: Types of Bonds and Issuers......Page 34 Module 51.2: Corporate Debt and Funding Alternatives......Page 39 Key Concepts......Page 45 Answer Key for Module Quizzes......Page 48 Module 52.1: Bond Valuation and Yield to Maturity......Page 49 Module 52.2: Spot Rates and Accrued Interest......Page 53 Module 52.3: Yield Measures......Page 57 Module 52.4: Yield Curves......Page 63 Module 52.5: Yield Spreads......Page 68 Key Concepts......Page 71 Answer Key for Module Quizzes......Page 74 Module 53.1: Structure of Mortgage-Backed Securities......Page 76 Module 53.2: Prepayment Risk and Non-Mortgage-Backed ABS......Page 83 Key Concepts......Page 93 Answer Key for Module Quizzes......Page 96 Module 54.1: Sources of Returns, Duration......Page 98 Module 54.2: Interest Rate Risk and Money Duration......Page 108 Module 54.3: Convexity and Yield Volatility......Page 111 Key Concepts......Page 118 Answer Key for Module Quizzes......Page 121 Module 55.1: Credit Risk and Bond Ratings......Page 123 Module 55.2: Evaluating Credit Quality......Page 129 Key Concepts......Page 139 Answer Key for Module Quizzes......Page 142 Topic Assessment: Fixed Income......Page 143 Topic Assessment Answers: Fixed Income......Page 146 Module 56.1: Forwards and Futures......Page 148 Module 56.2: Swaps and Options......Page 152 Key Concepts......Page 156 Answer Key for Module Quizzes......Page 157 Module 57.1: Forwards and Futures Valuation......Page 158 Module 57.2: Forward Rate Agreements and Swap Valuation......Page 164 Module 57.3: Option Valuation and Put-Call Parity......Page 168 Module 57.4: Binomial Model for Option Values......Page 173 Key Concepts......Page 178 Answer Key for Module Quizzes......Page 181 Module 58.1: Private Equity and Real Estate......Page 183 Module 58.2: Hedge Funds, Commodities, and Infrastructure......Page 192 Key Concepts......Page 203 Answer Key for Module Quizzes......Page 207 Topic Assessment: Derivatives and Alternative Investments......Page 209 Topic Assessment Answers: Derivatives and Alternative Investments......Page 211 Appendix......Page 213 Formulas......Page 217 Copyright......Page 219