CFA Level 1 - Fixed Income question and answers 100% correct 2024

CFA Level 1 - Fixed Income question and answers 100% correct 2024 Bond Indenture - correct answer Contract that specifies all the rights and obligations of the issuer and owners of a fixed income security. Negative Covenants - correct answer Prohibitions on the borrower. Affirmative Covenants - correct answer Actions that the borrower promises to perform. Maturity or Term to Maturity - correct answer Length of time until loan contract or agreement expires. Remaining life of bond. Par Value - correct answer Amount borrower promises to pay on or before maturity date. Coupon Rate - correct answer Rate when multiplied by Par Value gives amount of annual interest payment. Zero-Coupon Bonds - correct answer Bonds that do not pay interest; Instead sold at a deep discount from par values. Market convention states semi-annual compounding used when pricing zeros. Non-Amortizing Bond (Bullet Bond or Bullet Maturity) - correct answer Characteristic of most T-Bonds and Corporate bonds. Pay only interest until maturity, at which time full face value is paid back. Bullet Bonds - correct answer Pay entire principal in one lump sum at maturity. Serial Bonds - correct answer Pay off principal thru series of pmts over time. Amortizing Securities - correct answ