Practice Exam #1, Question #16

I'm looking at the answer key - can you help me understand where the value in cell O13 is coming from?

I thought that total R1 charges for bonds subject to BSF would essentially be the basic charge for Mortgage bonds and Class 02 through 05 bonds (since those are not highlighted in red, indicating they are subject to BSF), which would be 1,600. I can't figure out where the 2,362 is coming from.

Comments

  • Bonds subject to BSF are the six classes of unaffiliated bonds. The issuers of the other assets are in red: they are not subject to BSF. 2,362 is the sum-product of the bond values and their respective RBC factors.

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