Examen 2. Etapa 1 Fixed Income

A company has existing secured, unsubordinated debt that includes a pari passu clause. If it now issues new debt that is also secured and unsubordinated, which best describes the payment priority between the new and the old debt?

In a floating-rate note, a reference rate (such as the MRR) is most likely used to determine:

From the bondholder’s perspective, an advantage of a callable bond over an equivalent option-free bond is most likely that the callable bond offers:

An FRN pays a quarterly coupon of MRR + 150 bps (quoted margin). If the 3-month MRR set on the reset date is 4.0% per year and the face value is $100,000, the coupon payment for the next quarter is approximately:

A bond with a coupon step-up provision tied to the issuer’s credit rating most likely:

A capital-indexed inflation-linked bond (such as TIPS) with a fixed 3% annual coupon had a face value of $1,000. After one year with cumulative inflation of 4%, the adjusted principal is $1,040. The coupon paid that period is approximately:

In a single-price (Dutch) auction of government debt, all winning bidders:

Settlement of government bond trades in the secondary market usually occurs, most likely:

A shelf registration most likely allows the issuer to:

Compared with commercial paper, medium-term notes (MTN) are most likely characterized by being:

A wholesale funding source for a bank, as opposed to retail funding, is most likely:

Treasury bills are most likely:

A bond issued by a supranational organization (e.g., the World Bank) is most accurately characterized by:

A bond with a face value of $1,000 pays a 5% annual coupon in two semiannual payments and matures in 2 years. If the YTM is 6% per year (compounded semiannually), the bond’s price is approximately:

If the yield stays constant, the price of a bond trading at a discount, as it approaches maturity, will tend to:

Matrix pricing is most likely used to:

For a bond trading at a premium to par, what is the correct order of the following yield measures, from highest to lowest?

A bond with a $1,000 face value and a 7% annual coupon trades at $1,120. Its current yield is approximately:

A bond offers a yield of 6% per year with semiannual periodicity (bond-equivalent yield). Expressed with annual periodicity (effective annual yield), the return is approximately:

For a callable bond, the relationship between the Z-spread and the option-adjusted spread (OAS) is most accurately: