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Fixed Income (Bond Market) Interview Preparation



Question: What is the effect of having different issuers for the bonds?

Answer: It is important for the investor to realize that, by law or practice or both, these different borrowers have developed different ways of raising debt capital. Because of these different issuers, issued debt requirement and bonds have different yield, denomination, safety of principal, maturity, tax status.


Question: What are the common provisions which can affect the bonds characteristics?

Answer: There are some important provisions as below
- Call privilege
- Put features
- Sinking fund.
These characteristics of the bonds vary with the obligor or issuing authority.


Question: Can you explain the Maturity in Fixed Income or Bond Market?

Answer: Maturity is a key feature of any bond is its term-to-maturity, which represents number of years during which the borrower has promised to pay back the entire debt and needs to be specified in bond’s indenture. A Fixed Income Bond’s term-to-maturity is the date on which the debt will cease and the borrower has to pay back face value, or principal.


Question: Is there a way by which you can find the Bond Maturity at looking the name of the bond?

Answer: Yes, you can one indication of the maturity is that the code word or name for every bond contains its maturity and coupon. For example CompanyA bond which is maturing, in 2036 is given as “CompanyA 85/8s of 2036.�

Related Questions


Question: What do you mean by term bonds?

Question: How does the corporate bonds maturity can change or updated?

Question: Can Municipal bonds or U.S. government can have call privileges?

Question: What are the sinking fund provisions in case of Fixed Income or bond market?

Question: What do you mean by serial bond?

Question: What is the possible maturities of the bonds?

Question: Can you classify the bonds based on maturity?

Question: Can you describe the bond’s coupon?