BMC Fixed Income test, Complete questions & Answers.

Fixed Income The roots of the bond market What do the green bars at the bottom signify? According to the table on the right, which country owns 2.9% of total US debt? What quality of US government bonds causes investors to buy them when market volatility rises? Why is fixed income called fixed income? Question1: Question2: Question3: Question4: Bond Valuation When investors doubt the creditworthiness of a As a general rule, what percentage of debt to GDP will make a government’s bond yields spike? What is true of both the UK and the US? Which would you prefer? Which would you prefer? Question 1: Question 2: Question3: Question 4: Central Bankers and interest rates Which of the following is the strongest driver of inflation? This chart shows the output gap in the US as of the end of 1973 Question 1: Question 2: Question 3: Question 4: The yield Curve & why it matters Why does the yield curve naturally slope upwards? Why did the corporate spread significantly widen during the 2008 market crash? Question 1: Question 2: Question 3: Question 4: Movements in the yield curve Question 1: Question 2: Question 3: Question 4: