BMC Fixed Income test, Complete questions & Answers. (A GUARANTEED)

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BMC Fixed Income test, Complete questions & Answers. (A GUARANTEED) Fixed Income The roots of the bond market What do the green bars at the bottom signify? - Surplus According to the table on the... right, which country owns 2.9% of total US debt? - Belgium What quality of US government bonds causes investors to buy them when market volatility rises? - US government bonds are considered low risk Why is fixed income called fixed income? - Because the repayment amounts and timings are fixed for ordinary bonds Question1: - World total bond market value Question2: - To build liquid FX reserves Question3: - Coupon repayment Question4: - An investor who is about to buy bonds Bond Valuation When investors doubt the creditworthiness of a - Investors do not alter the calculation As a general rule, what percentage of debt to GDP will make a government’s bond yields spike? - There is no general rule What is true of both the UK and the US? - Both countries are highly creditworthy Which would you prefer? - A 4% annual yield on a risk free 10 year government bond from the mythical country of Utopia Which would you prefer? - A 5% annual yield on an investment in 10 year US government bonds Question 1: - The large government bond market competes for investors’ attention via yields.Question 2: - Creditworthiness Question3: - Norway Question 4: - By comparing the yields [Show More]

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