The Yield Curve is a graphical depiction of:
Explanation
FinTree Fruit 9: Yield Curves defines it as the graph of YTM and maturity.
Other questions
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 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: