Fixed Income Securities PGDM

Debt securities are often called fixed income securities because ________.

• The government fixes the maximum rate that can be paid on bonds
• They are held predominantly by older people who are living on fixed incomes
• They pay a fixed amount at maturity
• They promise either a fixed stream of income or a stream of income determined by a specific formula

A Corporate debt instrument's rating movement from AAA to AA indicates: _________.

• Deterioration in Country's Economic parameters
• Deterioration in issuer's financial capability
• Change in Government regime in domestic market
• Changes in Central bank policies

Ratings of a bond determine its spreads over ________.

• Sovereign bonds
• Currencies
• Issuers
• Derivatives

Monetary policy at its core is about determining ____________.

• Credit flow
• Interest rate
• Inflation
• Growth

What is the average daily balance that a bank is required to maintain with RBI as a notified percentage of its NDTL?

• CRR
• SLR
• WACR
• LAF

Which bonds refer to the debt securities issued by a state to finance its capital expenditure?

• GOI securities
• Gilt edged securities
• SDLs
• Municipal bonds

The rate of interest paid on the bond is referred to as _______ payment.

• Capital appreciation
• Capital depreciation
• Principal
• Coupon

A contract gives the bond holder the right to redeem the bond at a pre-fixed date before maturity. The option embedded in this contract is known as ____________.

• Convertible option
• Swaption
• Put option
• Call option

The holders of which of these will be paid last in case of a company's default?

• Senior debt
• Senior unsecured bonds
• Junior debt
• Equity

Interest on Sovereign Gold Bonds (SGB) is credited ________.

• Annually
• Semi-annually
• Quarterly
• Monthly