Fixed-Income Instrument Features

What does a bond primarily represent in a financial transaction?

Which term describes the amount repaid to the bondholder at maturity?

An investor purchases a bond with a face value of USD 1,000 and a 5 percent coupon rate. What is the annual interest payment?

Yield to Maturity (YTM) is best described as:

Which entity is considered a supranational organization issuer?

Why do sovereign bonds usually represent the lowest credit risk in a region?

What refers to the remaining time to a bond's maturity?

Fixed-income securities with a tenor of one year or less at issuance are known as:

Bonds with no stated maturity date are called:

How is the coupon determined for a Floating-Rate Note (FRN)?

In a Floating-Rate Note (FRN), the credit spread is usually:

What defines a Zero-Coupon Bond?

Which type of debt has priority over other debt claims in the event of bankruptcy?

A contingency provision in a legal agreement:

A callable bond gives the issuer the right to:

In a callable bond structure, the issuer is considered to be:

A putable bond gives the investor the right to:

For a convertible bond, the investor effectively holds:

Current Yield (CY) is calculated as:

Current yield is analogous to which measure for an equity security?

Which of the following is NOT an assumption of Yield to Maturity (YTM)?

The Yield Curve is a graphical depiction of:

The difference between the yield curve of corporate bonds and government bonds is primarily due to:

What is an Indenture?

National governments typically have the sovereign right to repay debt using:

Corporate issuers with less stable operating cash flows often offer what to investors?

What are Covenants in the context of a bond issue?

Affirmative covenants typically specify:

Which of the following is an example of an affirmative covenant?

A 'pari passu' clause ensures that:

What does a 'cross-default clause' specify?

Negative covenants typically prohibit issuers from:

An 'incurrence test' covenant restricts the issuer's ability to:

What is the purpose of a 'Negative Pledge Clause'?

Asset-backed securities (ABS) are repaid primarily from:

Which type of issuer includes agencies like national railways or postal services?

Corporate bonds pay interest typically at what frequency?

The higher an issuer’s credit quality, the:

If a bond has a Coupon Rate of 10 percent and a Face Value of 100, but the price is 110, the Current Yield is:

In the context of bond covenants, highly restrictive covenants may:

What defines a 'foreign bond'?

A 'Global Bond' is issued simultaneously in:

Which feature distinguishes a Eurobond?

The tax treatment of Original Issue Discount (OID) in the United States typically involves:

Capital gains on bonds are usually taxed:

A 'Sukuk' is a fixed-income instrument that:

Contingent Convertible Bonds (CoCos) differ from standard convertibles because:

A 'Step-up bond' pays a coupon that:

Which bond type pays interest in the form of additional principal rather than cash?

In a 'waterfall structure' used in ABS, principal repayments are: