FIXED INCOME (BLOOMBERG MARKET CONCEPTS)

What do the red bars at the

bottom signify?

A- Growth

B- Surplus

C- High revenue

D- Deficit

At the end of January 2019, the

total actively traded US debt is
$16T. According to the table,
approximately what percent of
US debt does china own at this
time?

A- 3%

B- 17%

C- 18.4%

D- 7%

What quality of US Government bonds causes investors to buy them when market volatility rises?

A- US government bonds are stored in bank vaults

B- US government bonds are considered low risk

C- US government bonds are denominated in dollars

D- US government bonds are underwritten by global taxpayers

Why is fixed income called fixed income?

A- Because current and future owners of a bond get the same effective annual interest rate

B- Because bonds cannot rise in price over the life of a bond

C- Because the repayment amounts, and timings are fixed for ordinary bonds

D- Because the price of the bond is fixed, given the safe haven nature of bonds
FIXED INCOME (BLOOMBERG MARKET CONCEPTS)

Why does the united states have a strong reputation for creditworthiness?

A- Because America’s wealth means that it does not have to borrow

B- Because Dollars are backed by the gold at Fort Knox

C- Because it has the right to tax the wealthiest population on the earth

D- Because no country has a many taxable states as the united states

If the yield on a fixed-coupon bond goes up, does the borrower have to pay more interest?

A- No, the price goes up, the yield goes up

B- Yes, the price goes down, the yield goes up

C- No, the price goes down, the payments are fixed

D- Yes, the price goes up, the yield goes down

How much will the Peruvian government

spend on servicing its current debt outstanding
for the given bond in 2025 according to this
chart captured in 2019?

A- 3000 Million Peruvian sol

B- 4000 Million Peruvian sol

C- 10000 Million Peruvian sol

D- 6000 Million Peruvian sol

Which one of the following actors benefits when interest rates go up?

A- A company with a fixed-rate loan

B- An investor who already own bonds

C- A company about to secure a fixed-rate loan

D- An investor who is about to buy bonds