stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Topic 5: Bond Markets Flashcards | StudBud
Explore
/
Topic 5: Bond Markets
When does a bond sell at a premium ?
Who are the main bond rating agencies?
Topic 5: Bond Markets
16 terms
·
StudBud Administration
·
123 plays
Capital market
Flashcards
16 cards
F
Practice quiz
P
Host live
L
Questions
16
Answers
1
Who are the main bond rating agencies?
JP Morgan Chase and Two Sigma
Moody's and Standard & Poor's
Lehman Brothers and Bear Stearns
BAML and AQR
2
When does a bond sell at a premium ?
Market interest rate > coupon rate of bond
Market interest rate < coupon rate of bond
Market interest rate = coupon rate of bond
3
What are the characteristics of a bond?
Present value, discount rate, payment frequency
Face value, interest rate, maturity date, payment frequency
Face value, maturity date, coupon rate, payment frequency
Yield, future value, time to maturity
4
What is a capital market instrument likely to finance?
Hospital
Inventory
One residential house
Purchase of a car
5
Can bonds ever be converted into ordinary shares (equity security/stock)
Yes
No
6
Why do long term projects want to use long term debt securities to finance the project?
To ensure there are a lot of refinancing problems
To ensure there is fewer refinancing problems
7
Who are the main investors of bonds?
Banks and central banks
Private investors
Government
Fund managers
8
What do firms and governments issue in the capital market?
Short term debt securities
Medium term debt securities
Long term debt securities
9
Do corporate bonds pay a coupon?
No
Yes
10
When does a bond sell at a discount?
Market interest rate < coupon rate of bond
Market interest rate > coupon rate
11
Who are the main borrowers of bonds?
Central banks
Government & corporations
Private investors
Fund managers
12
What are the two main type of government bond securities?
Semis
CGS and Semis
CGS
13
Which trades at a higher yield?
Semis
CGS
14
What do bond ratings range between ? (Highest to lowest)
A to B
AAA to D
A to D
AAA to C
15
What are the two type main ways corporate bonds are bought to the market?
Private placement and public sales
Public placement and public sales
Private placement and private sales
Public placement and private sales
16
What do bond prices have an inverse relationship with?
Inflation rates
Lending rates
Interest rates
Exchange rates
