Wall Street Prep - FIMC 2 Fixed Income
Trading and Bonds Exam Questions
and Answers3
True/False: Traders may hedge Interest Rate and Credit Risk of the bonds they own using the
swaps market. During times their bonds would lose money, their swap hedge will make money,
and during times their bonds would gain money, their swap hedge will lose money. - ANSWERS-
True
A $1,000 bond with a 6% Annual Rate would have a semi-annual coupon payment of?
A: $3
B: $6
C: $30
D: $60 - ANSWERS-C: $30
$1,000 x 0. = $30
What is OTC trading? - ANSWERS-Over the Counter trading?
A FRN stands for:
A: Fixed Rate Note, where the coupon payment is the same every period
B: Floating Rate Note, where the coupon payment is determined based on an index such as
LIBOR or SOFR
C: a Flexible Rate Note, where the issuer has the ability to pay a Fixed or a Floating Rate
Trading and Bonds Exam Questions
and Answers3
True/False: Traders may hedge Interest Rate and Credit Risk of the bonds they own using the
swaps market. During times their bonds would lose money, their swap hedge will make money,
and during times their bonds would gain money, their swap hedge will lose money. - ANSWERS-
True
A $1,000 bond with a 6% Annual Rate would have a semi-annual coupon payment of?
A: $3
B: $6
C: $30
D: $60 - ANSWERS-C: $30
$1,000 x 0. = $30
What is OTC trading? - ANSWERS-Over the Counter trading?
A FRN stands for:
A: Fixed Rate Note, where the coupon payment is the same every period
B: Floating Rate Note, where the coupon payment is determined based on an index such as
LIBOR or SOFR
C: a Flexible Rate Note, where the issuer has the ability to pay a Fixed or a Floating Rate
