Chapter 7 - P2

Question 1

What is YTM and an important assumption

Answer 1

YTM is an estimate of average rate or return on a bond if held to maturity.

Assumed that all coupons are reinvested at the same rate as the prevailing YTM

Question 2

What is the fisher curve

Answer 2

It explains how interest rates are determined based on its interaction with inflation rate, nominal and real interest rate

Question 3

What is a global bond index example?

Answer 3

FTSE World Government Bond Indext

Question 4

What is a US. Bond market example

Answer 4

Bloomberg barclays US aggregate bond index

FTSE US Broad investment-Grade bond index

Question 5

What is a Government bond Index example

Answer 5

FTSE UK actuaries gilts index series

S&P france sovereign Inflation-Linked Bond Index

Question 6

What is an Emerging Makret bond Index Example

Answer 6

J.P. Morgan Emerging Markets bond Index