Topic 4- Bonds (Seminar + Exam Questions)

Question 1

Outline and discuss the uses of bond indices

Answer 1

Bond Indexes are less commonly available than stock indexes.

Bond indexes are put to different uses:

1. An index calculated daily allows a quick assessment of the general direction and movement of the market.
2. Total return bond indexes are also required for measuring the performance of a bond portfolio in a domestic or multicurrency setting (monthly or quarterly).