Fixed Income Bond Valuation (Katas)

35 questions
Question 1 of 35

A semiannual bond has a periodic IRR of USD 0.67\%$. Using the Curriculum’s annualizing approach, the annualized yield-to-maturity is closest to?

Question 2 of 35

A fixed-rate bond will most likely trade at par when its coupon rate is:

Question 3 of 35

Which formula most accurately gives accrued interest between coupon dates?

Question 4 of 35

The full price of a bond is most accurately equal to:

Question 5 of 35

With a constant market discount rate, a discount bond's price will most likely move over time toward:

Question 6 of 35

The flat price of a bond is also most accurately called the:

Question 7 of 35

For a zero-coupon bond with one cash flow at maturity, which formula most accurately gives present value?

Question 8 of 35

Matrix pricing most accurately estimates the price of an illiquid bond by using comparable bonds with similar:

Question 9 of 35

If $PV(\text{Bond coupon}) = \dfrac{PMT_t}{(1 + r)^t}$, which rearrangement solves for $PMT_t$?

Question 10 of 35

Generally, for the same coupon rate and the same yield change, the greater percentage price change will most likely occur for the bond with the:

Question 11 of 35

Under the 30/360 day count convention, each month is assumed to have:

Question 12 of 35

Accrued interest is most accurately the portion of the next coupon payment owed to the:

Question 13 of 35

A trade between coupon dates requires the buyer to most likely pay the seller the:

Question 14 of 35

Bond pricing is most accurately described as an application of what?

Question 15 of 35

For the same maturity and the same yield change, the greater percentage price change will most likely occur for the bond with the:

Question 16 of 35

Under the actual/actual day count convention, the number of days in a year is assumed to be:

Question 17 of 35

Yield-to-maturity is most accurately the bond's:

Question 18 of 35

For an investor's return to equal a bond's YTM, the bond must most likely be:

Question 19 of 35

Which formula most accurately gives the present value of one bond coupon received in period $t$?

Question 20 of 35

For an investor's return to equal a bond's YTM, coupon payments must most likely be:

Question 21 of 35

Which rearrangement of $PV_{Full} = PV_{Flat} + AI$ solves for accrued interest?

Question 22 of 35

A fixed-rate bond most likely trades at a discount when its coupon rate is:

Question 23 of 35

Bond prices and yields-to-maturity most likely move in:

Question 24 of 35

Accrued interest is calculated by multiplying the coupon payment by:

Question 25 of 35

If $PV = \dfrac{PMT}{(1 + r)^t}$, which rearrangement solves for the yield $r$?

Question 26 of 35

Which formula most accurately states the bond price on a coupon date?

Question 27 of 35

A bond's YTM may be positive, zero, or:

Question 28 of 35

If a bond’s full price is 99.587 and accrued interest is 0.245, the flat price is closest to?

Question 29 of 35

If $PV_{Full} = PV_{Flat} + AI$, which rearrangement gives the flat price?

Question 30 of 35

Which formula most accurately links full price, flat price, and accrued interest?

Question 31 of 35

A bond has $t = 60$, $T = 184$, and $PMT = 0.75$. Using $AI = \dfrac{t}{T} \times PMT$, the accrued interest is closest to?

Question 32 of 35

A fixed-rate bond most likely trades at a premium when its coupon rate is:

Question 33 of 35

A zero-coupon bond has $PV = 100.763$, $PMT = 100$, and $t = 5$. Using $r = \left(\dfrac{PMT}{PV}\right)^{1/t} - 1$, the annualized yield is closest to?

Question 34 of 35

The market discount rate is most accurately the rate of return:

Question 35 of 35

In the bond-pricing formula, which expression correctly represents the final period cash flow term?