Fixed Quiz

…..…. Is described as an affirmative covenant.

A balloon payment is related to a bond that has:

The callable bond which involves a make-whole provision is most likely to have, relative to a callable bond without such a provision:

A firm issues two bonds, Bond X and Bond Y, identical except that Bond Y is callable and Bond X is non-callable. It is most likely that, relative to Bond X, Bond Y will have a higher:

 Ricardian equivalence implies that lower taxes today will lead to:

On-the-run treasury bonds :

The issuer of a bond will bear the lowest level of risk when the offering is through:

The three-year par yield can be calculated from:

a corporate bond yield spread above the market reference rates MRR is referred to:

a callable bond, compared to its Z-spread, the option-adjusted spread is:

If an option-free bond is trading at a discount. The current yield of the bond will be:

What is the reason for a floating-rate security to trade at a discount?

when interest rates decline to a rate below that of the coupon rate on a bond with an embedded call option, the bond is most likely to show which of the following?

When analyzing the changing shape of the yield curve, you may resort to……..

……….. is likely to have the highest convexity.

Pari Passu implies that:

Equity-type analysis is used when analyzing credit riskiness of:

A collateralized mortgage obligation has a planned amortization class tranche and a support tranche. Relative to the support tranche, the PAC tranche has:

…………… is not a key metric used to analyse CMBS