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Fixed Income (Bond Market) Interview Preparation



Question: What do you mean by option-free bond?

Answer: These are the bonds which does not have any in-built option like callable, puttable and convertible.


Question: Is Bond price and expected cash-flow from that bond is related?

Answer: Yes, this is always the first thing which is considered to calculate the price of a bond.


Question: What are the possible cashflow for option Free Bond?

Answer: option free bond has following component as part of the cash-flow
- Periodic Coupon until maturity date (Weekly, monthly, quarterly, semiannually and annually)
- Par value at maturity
Even determining cash-flow of a bond is not simple.


Question: For which kind of bond future cash-flow is fixed?

Answer: It usually fixed for the fixed rate and option free (not callable, not puttable and not convertible) bonds.

Related Questions


Question: What do you mean by GDP or Real Gross Domestic Product?

Question: What is a GDP Gap and Potential GDP?

Question: Why Potential GDP is considered important for a country?

Question: Why a potential corporate bond investor care about the GDP?

Question: What is a Capex?

Question: Is this correct to say that pile of inventories because of any reason increases the GDP.

Question: What is the effect of import on a countries GDP?

Question: What do you mean by trade deficit?