Fixed Income Samenvattingen, Aantekeningen en Examens

Fixed Income Review Test and Quizzes (Answered) Verified Solution The US debt market is larger than the US equity market? (T/F) TRUE All of the following are differentiating factors of fixed income securities versus equity securities except for: -Fixed claim -Infinite Life -Tax deductibility by user -Higher priority on cash flows Infinite Life A bond's CUSIP is defined as: A) A unique nine digit number to identify individual bonds B) A number assigned by the SEC to all registered b...

fixed income test 3 (Answered) Complete Solution delta first-order sensitivity to the price of the underlying asset; positive for calls and increase with moneyness, negative for puts and decrease with moneyness gamma measures how delta changes as spot price increases theta measures time decay of an options value; always negative for calls, usually negative for puts vega sensitivity of an options price to changes in volatility of the underlying asset rho sensitivity of an option price t...

Fixed Income Test 2 (Answerd) Verified Solution Two factors account for prominence of US Treasuries 1) Volume 2) Liquidity Department of Treasury = largest global single issuer of debt. Most active/liquid market in the world. All Treausury securities are noncallable. Thus, investors are not subject to call risk Marketable Treasury secs fixed-principal securities or inflation-indexed securities Treasury Bills - issued at discount - no coupon - one year or less - return to the inv...

Fixed Income Test 1 (Answered) 2022 The US debt market is larger than the US equity market? T/F True All of the following are differentiating factors of fixed income securities versus equity securities except for: Fixed claim Higher priority on cash flows Tax deductibility by issuer Infinite Life Infinite Life A bond's CUSIP is defined as: A) A unique nine digit number to identify individual bonds B) A number assigned by the SEC to all registered bond offerings Only A is corre...

The US debt market is larger than the US equity market? T/F - True All of the following are differentiating factors of fixed income securities versus equity securities except for: Fixed claim Higher priority on cash flows Tax deductibility by issuer Infinite Life - Infinite Life A bond's CUSIP is defined as: A) A unique nine digit number to identify individual bonds B) A number assigned by the SEC to all registered bond offerings - Only A is correct All of the following are difference...

The US debt market is larger than the US equity market? (T/F) TRUE All of the following are differentiating factors of fixed income securities versus equity securities except for: -Fixed claim -Infinite Life -Tax deductibility by user -Higher priority on cash flows Infinite Life A bond's CUSIP is defined as: A) A unique nine digit number to identify individual bonds B) A number assigned by the SEC to all registered bond offerings Only A is correct All of the following are difference...

delta first-order sensitivity to the price of the underlying asset; positive for calls and increase with moneyness, negative for puts and decrease with moneyness gamma measures how delta changes as spot price increases theta measures time decay of an options value; always negative for calls, usually negative for puts vega sensitivity of an options price to changes in volatility of the underlying asset rho sensitivity of an option price to changes in the risk free rate (r); positive for ...

Two factors account for prominence of US Treasuries 1) Volume 2) Liquidity Department of Treasury = largest global single issuer of debt. Most active/liquid market in the world. All Treausury securities are noncallable. Thus, investors are not subject to call risk Marketable Treasury secs fixed-principal securities or inflation-indexed securities Treasury Bills - issued at discount - no coupon - one year or less - return to the investor = the difference between the maturity value a...

All The US debt market is larger than the US equity market? T/F of the following are differentiating factors of fixed income securities versus equity securities except for: Fixed claim Higher priority on cash flows Tax deductibility by issuer Infinite Life Infinite Life A bond's CUSIP is defined as: A) A unique nine digit number to identify individual bonds B) A number assigned by the SEC to all registered bond offerings Only A is correct All of the following are differences in h...

Fixed Income Test 2 (Answerd) Verified Solution Two factors account for prominence of US Treasuries 1) Volume 2) Liquidity Department of Treasury = largest global single issuer of debt. Most active/liquid market in the world. All Treausury securities are noncallable. Thus, investors are not subject to call risk Marketable Treasury secs fixed-principal securities or inflation-indexed securities Treasury Bills - issued at discount - no coupon - one year or less - return to the inv...