Frequently Asked Questions
CFA Level 1 Fixed Income is considered one of the more difficult topics on the exam, and for most candidates, it is also one of the least familiar. Fixed income securities are typically more abstract than equity investments. Furthermore, candidates are often more familiar with the stock exchange and equity investments than they are with debt securities.
The earning modules are highly theoretical and laden with novel terms. Candidates are introduced to several methods of bond valuation and complicated concepts related to risk and return analysis. However, having a solid understanding of Fixed Income is critical to the CFA charter.
Like its Level 1 counterpart, the CFA Level 2 Fixed Income is considered one of the more difficult topics on the exam. Fixed income is relatively heavy on both formulas and theory. Candidates will study various formulae used to value bonds with embedded options and the theoretical and practical aspects of the yield curve.
To get the best of both worlds, think about combining the CFA curriculum with a third-party prep provider, like UWorld. The End of Chapter (EOC) questions from the CFA Institute are comprehensive, and third-party study resources are condensed and time-efficient.
For constructed response sessions, you need to practice a lot, ideally in an exam setting. Improve your ability to self-grade essay questions and become a master at responding to them. If you are running short on time, go over the questions and sample answers to complete your review prior to the test. Don’t overlook or undervalue the item set session. This is most likely going to increase your overall score.
