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Question 1 reset
Which of the following instruments has no reinvestment risk?
Question 2 reset
Which of the following has higher credit risk?
Question 3 reset
The “fixed” in fixed-income securities implies that ________.
Question 4 reset
Which of the following makes debt an essential component of capital?
Question 5 reset
Which of the following bond pays interest in proportion to the prevailing market rate?
Question 6 reset
Credit spread is the price of ___________.
Question 7 reset
If the long-term rate is 10% and short-term rate is 8%, the shape of term structure of rates is ___________.
Question 8 reset
If both the long-term rate and short term rate is 10%, the shape of term structure of rates is ___________.
Question 9 reset
If the spread between long-term rate and short-term rate has changed from +0.75% to +1.25%, the shift in term structure is __________.
Question 10 reset
The concept of “accrued interest” applies to which of the following?
Question 11 reset
Which of the following is a true measure of the realized return for a coupon bond?
Question 12 reset
Which of the following is a correct measure of the realized return for a zero-coupon bond?
Question 13 reset
Bond A and Bond B are issued by the same issuer and have the same maturity. Bond is priced at 99 and Bond B at 101. Which of the two bonds is a better investment?
Question 14 reset
Yield-to-maturity (YTM) assumes which of the following?
Question 15 reset
If yield-to-maturity rises, then n __________.
Question 16 reset
Which of the following is the role of derivatives?
Question 17 reset
Which of the following derivatives have the largest market size globally?
Question 18 reset
Which of the following correctly describes “hedging”?
Question 19 reset
Which of the following is the last trading day for 10-year bond futures?
Question 20 reset
Which of the following is the settlement day for 10-year bond futures?
Question 21 reset
Which of the following is correct about the Conversion Factor?
Question 22 reset
What is the settlement method for 91-day bill futures?
Question 23 reset
Which of the following statements is true?
Question 24 reset
Which of the following statements is true for Netting?
Question 25 reset
Which of the following statements is true for Netting?
Question 26 reset
In case of Interest Rate Futures, initial margin is paid by _____________.
Question 27 reset
In case of Interest Rate Futures, mark-to-market margin is paid by _____________.
Question 28 reset
The regulator for the primary market of government securities is _________.
Question 29 reset
The regulator for the Exchange-traded interest rate derivatives is __________.
Question 30 reset
Which of the following category of market participants can use interest rate derivatives?
Question 31 reset
Which of the following risks can be hedged with T-Bill and T-Bond futures?
Question 32 reset
For hedging or speculation, which of the following features of futures contract will be relevant?
Question 33 reset
If you expect the interest rate will go up in future, today you should _________.
Question 34 reset
Basis risk arises from _____________.
Question 35 reset
Futures contracts can be used to modify the exposure portfolio’s Modified Duration in the following way/s: ______________.

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