Fixed Income - Fixed Income Section 2

Avatto>>CFA Level 1>>PRACTICE QUESTIONS>>Fixed Income>>Fixed Income Section 2

67. An analyst is analyzing industry structure, industry fundamentals, and company fundamentals while rating a particular corporate bond. Which component of credit analysis is he currently analyzing?

  • Option : A
  • Explanation : Analyzing industry structure, industry fundamentals, and company fundamentals, come under the capacity category of traditional credit analysis.
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68. Which of the following assets is not included in the value of collateral while analyzing the collateral for a debt issue?

  • Option : B
  • Explanation : Goodwill is not included in the value of collateral while analyzing collateral for any issue. Goodwill is generally written down when the company performance is poor.
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69. The quality and value of the assets supporting the issuer’s indebtedness is called:

  • Option : B
  • Explanation : Collateral refers to the quality and value of the assets supporting the issuer’s indebtedness.
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