Fixed Income Flashcards
1
Q
Emerging market debt is best described as
A
Securities issued by countries that are not yet developed.
2
Q
nominal return of the bond minus inflation
A
real return
3
Q
The interest rate increases at specified intervals
A
step up bonds
4
Q
The higher the rate or yield of a bond in the secondary markets
A
less an investor will pay for equal bond
5
Q
Duration is inversely related to the bond’s
A
yield to maturity
6
Q
Convexity can best be described as
A
adjustment of the duration line
7
Q
Discount bonds have coupon rates that are
A
lower than the yield to maturity to the bond
8
Q
do not change during the life of the bond.
A
coupon payments
9
Q
Deferred interest does not
A
increase the quality of the issuer
10
Q
Duration has an indirect relationship with
A
interest rates
11
Q
A
