Fixed Income Investment Quiz

Fixed Income Investment Quiz

Professional Development

15 Qs

quiz-placeholder

Similar activities

FI Quiz 2

FI Quiz 2

University - Professional Development

15 Qs

Pragati Part 1

Pragati Part 1

Professional Development

10 Qs

S7 Finals

S7 Finals

Professional Development

10 Qs

Check your Financial Markets Knowledge

Check your Financial Markets Knowledge

University - Professional Development

16 Qs

UNIT 5 AND UNIT 6 GEFE (2023-24)

UNIT 5 AND UNIT 6 GEFE (2023-24)

Professional Development

18 Qs

Financial Literacy Quiz

Financial Literacy Quiz

Professional Development

12 Qs

RBT Mini Quiz

RBT Mini Quiz

Professional Development

20 Qs

LCO Quiz Whizz Ep.4

LCO Quiz Whizz Ep.4

Professional Development

10 Qs

Fixed Income Investment Quiz

Fixed Income Investment Quiz

Assessment

Quiz

Professional Development

Professional Development

Medium

Created by

James Grefalde

Used 1+ times

FREE Resource

15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

What is a bond's yield to maturity (YTM)?

The coupon payment divided by the bond's face value

The total return anticipated on a bond if held until maturity

The annual interest payment divided by the bond's market price

The interest rate set by the bond's issuer

2.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

Which of the following best describes bond duration?

The time remaining until the bond matures

A measure of a bond's price sensitivity to interest rate changes

The total interest earned on a bond over its lifetime

The difference between the bond's coupon rate and YTM

3.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

What does an upward-sloping yield curve typically indicate?

Economic recession

Declining interest rates

Economic growth expectations

High inflation expectations

4.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

What is the primary purpose of a callable bond?

To ensure fixed payments to investors

To allow issuers to redeem the bond before maturity

To provide higher yields than regular bonds

To avoid interest rate risks for investors

5.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

What is convexity in bond investments?

The rate of change of bond duration

The bond's price volatility

The annual yield on a zero-coupon bond

A measure of the curvature in the price-yield relationship

6.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

If a bond with a 5% coupon rate is priced at $950, which of the following is true?

The YTM is greater than 5%

The YTM is less than 5%

The bond is trading at par

The bond has a lower risk premium

7.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

If the yield curve becomes inverted, which of the following is a potential implication?

Interest rates are expected to rise

Economic expansion is on the horizon

A recession may occur soon

Bond prices will fall uniformly

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?