FI features

Question 1

tenor

Answer 1

years to maturity

Question 2

less than a year to maturity

Answer 2

capital market secutity

Question 3

more than 1 year to maturity

Answer 3

money market security

Question 4

principal/par value/ face value

Answer 4

rata kapitałowa

Question 5

fixed coupon

Answer 5

constant

Question 6

floating coupon

Answer 6

not constant MRR(market) + spread (is constant

Question 7

coupon rate and frequncy

Question 8

seniority

Answer 8

priority in the capital structure (secured or usecured)

Question 9

contingency provisions

Answer 9

a cluse to that allows to action if an event happens

eg. calls, puts, convertible to equity

Question 10

premium bond

Answer 10

price>par

Question 11

disquont bond

Answer 11

price<par

Question 12

par bond

Answer 12

price=par

Question 13

YTM

Answer 13

money weightened bond IRR

rate of return is YTM if

1. bond does not default
2. held to maturity (if we sell it before maturity)
3. coupon reinvested by YTM

Question 14

yield curves

Answer 14

yields on all bonds fetuared by the same issuer

yield are rising with a time because of uncerteanty premium

Question 15

g-spread

Answer 15

difreance in yields of gov bonds and corporate

Question 16

bond identiture

Answer 16

umowa
form of the bond, obligations and rights, sources of repayment

Question 17

negative covenants

Answer 17

the one which tell what issuer cant do (eg. 50% dividendy)

Question 18

affirmative covenants

Answer 18

eg. one default bond means all bond are default