CMSA EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED 100% GRADED A+
+
Based on our course materials, organize the various roles (from 1 to 5) of Origination/Sales & Trading
team members, starting with Relationship Management focused roles, ending with day-to-day
operational support.
As an Analyst or Associate on the Origination team, which of the tasks is most likely to be your top
priority on Deal Day?
term sheet, pricing
If a principal amount of $1,000 earns 6% per year compounded annually in the first 2 years and 3% in
the last 2 years, how much will you have total at the end of year 4?
6% 6% 3% 3%
10006% 60 (1+6%) 63.6(1+3%) 65.50 ( 1+3%)
1000*6%
What's the discount factor if you are going to receive $500 ten years from now with an 8% annual
interest?
What's the effective rate for investment with a 6% annual rate, compounded quarterly?
What are SWFs commonly established from?
,How does an increase in the Central Bank's policy rate effect it's domestic bond market
What is not true about fiat money?
What's the best way to manage the situation where individuals rationalize committing misconduct in
an organization?
If a company declares bankruptcy, what is the correct order of how stakeholders are paid out (from
first to last)?
What is the spread for this security after an investor submits a sell order for 185 shares at $41.87?
Decide whether Company A is a buy or sell depending on the following information:
Company A:
P/E Ratio: 8.12x
Share Price: $29.08
Intrinsic value of Company A is $28.91.
Someone interested in investing into early stage companies is likely to invest in what type of fund?
(Select the best answer).
Venture capital
In the above chart, which line best represents a defensive industry?
If Jim puts in an order to purchase 30 shares of company A for $1.30 while the current price is $1.35,
and the order is canceled immediately, what type of order did he put in?
A bond has a face value of $2,000 and a coupon of 4%, paid semi-annually. How much will the investor
receive every coupon payment?
, Which statement is the best description of the relationship between a bond's price and its yield?
Which statement is the best description of the relationship between a bond's price and its yield?
Calculate the accrued interest of the following bond on Feb 15 based on Actual/365 day count
conventions provided last coupon was paid on Dec 31.
Face value: $5,000
Annual coupon rate: 4%
Paid semi-annually
Which of the following might cause the yield curve to steepen?
Which of the following statements on bond yield is true?
4
I want to buy EUR/JPY using USD. Which of the following trades would achieve this objective?
A bank quotes GBP/USD at 1.5436-40. If a trader wishes to buy USD, what is the correct quote to
consider?
A trader has a soft limit of $8MM USD and a hard limit of $10MM USD. Their current NOP is $3MM
USD. They purchase $6MM USD, sell $1MM USD, and then purchase another $5MM USD. Which of the
following statements is correct? Select all that apply.
A trader is long EUR/USD at 1.2780 and has a target of 1.2790, but wants to limit losses to 1.2775. If
they have entered an OCO order, and EUR/USD trades below 1.2775 and then above 1.2790, what
would be the resulting trade?
Based on the priority of currencies, which of the following FX pairs are correctly quoted? Select all
correct answers.
COMPLETE SOLUTIONS VERIFIED 100% GRADED A+
+
Based on our course materials, organize the various roles (from 1 to 5) of Origination/Sales & Trading
team members, starting with Relationship Management focused roles, ending with day-to-day
operational support.
As an Analyst or Associate on the Origination team, which of the tasks is most likely to be your top
priority on Deal Day?
term sheet, pricing
If a principal amount of $1,000 earns 6% per year compounded annually in the first 2 years and 3% in
the last 2 years, how much will you have total at the end of year 4?
6% 6% 3% 3%
10006% 60 (1+6%) 63.6(1+3%) 65.50 ( 1+3%)
1000*6%
What's the discount factor if you are going to receive $500 ten years from now with an 8% annual
interest?
What's the effective rate for investment with a 6% annual rate, compounded quarterly?
What are SWFs commonly established from?
,How does an increase in the Central Bank's policy rate effect it's domestic bond market
What is not true about fiat money?
What's the best way to manage the situation where individuals rationalize committing misconduct in
an organization?
If a company declares bankruptcy, what is the correct order of how stakeholders are paid out (from
first to last)?
What is the spread for this security after an investor submits a sell order for 185 shares at $41.87?
Decide whether Company A is a buy or sell depending on the following information:
Company A:
P/E Ratio: 8.12x
Share Price: $29.08
Intrinsic value of Company A is $28.91.
Someone interested in investing into early stage companies is likely to invest in what type of fund?
(Select the best answer).
Venture capital
In the above chart, which line best represents a defensive industry?
If Jim puts in an order to purchase 30 shares of company A for $1.30 while the current price is $1.35,
and the order is canceled immediately, what type of order did he put in?
A bond has a face value of $2,000 and a coupon of 4%, paid semi-annually. How much will the investor
receive every coupon payment?
, Which statement is the best description of the relationship between a bond's price and its yield?
Which statement is the best description of the relationship between a bond's price and its yield?
Calculate the accrued interest of the following bond on Feb 15 based on Actual/365 day count
conventions provided last coupon was paid on Dec 31.
Face value: $5,000
Annual coupon rate: 4%
Paid semi-annually
Which of the following might cause the yield curve to steepen?
Which of the following statements on bond yield is true?
4
I want to buy EUR/JPY using USD. Which of the following trades would achieve this objective?
A bank quotes GBP/USD at 1.5436-40. If a trader wishes to buy USD, what is the correct quote to
consider?
A trader has a soft limit of $8MM USD and a hard limit of $10MM USD. Their current NOP is $3MM
USD. They purchase $6MM USD, sell $1MM USD, and then purchase another $5MM USD. Which of the
following statements is correct? Select all that apply.
A trader is long EUR/USD at 1.2780 and has a target of 1.2790, but wants to limit losses to 1.2775. If
they have entered an OCO order, and EUR/USD trades below 1.2775 and then above 1.2790, what
would be the resulting trade?
Based on the priority of currencies, which of the following FX pairs are correctly quoted? Select all
correct answers.
