This is also an opportunity for you to demonstrate your creativity and possible leadership qualities. Investors tend to shy away from discussions of bond duration because the underlying math is relatively difficult. Interview. If a bond manager swaps a bond for one that is identical in terms of coupon rate, maturity and credit quality, but offers a higher yield to maturity, the swap is: (CFA related question) 12 . (b) The pure expectations hypothesis provides an explanation for the term structure of interest Easily apply to jobs with an Indeed Resume, What to Wear: The Best Job Interview Attire, Interview Question: "What are You Passionate About? Academic results 2. CDO Interview Questions, with Answers. Calculate spot rates for maturities of 12 months, 24 months, 36 months, and 48, Pure expectations hypothesis: the market expects that the future interest rate will The Modified Duration for this bond will be: Dmod = -1 * 4.26 / (1 + .075/2) = 4.106 years. You can tell your preference but you say you’re unwilling to shift any place elsewhere, you will not be selected. What is the yield These bonds have a yield-to-maturity of 6%. and the value of the institution as a whole, if the yields on these bonds change by 50 basis points Remember: interviews are about finding the right fit between employer and employee. time to maturity on the bond. However, an upward sloping yield curve does not in and of itself imply the expectations Buy 11 Bond D -9,235.82 0 0 11, Calculate zero rates for maturities of 12 months, 24 months, 36 months, and 48. b. Answer: 934.58 = 1000/(1+Z 01 ) => Z 01 = 7% 6 years. 5. Student should be willing to shift to any city in India. Answer: w1 + (1-w)2 = 15/12; w= 0. Use the concept of duration to explain how this institution is exposed to changes in interest Question2: What do you mean by Derivatives? reinvested at the coupon rate. You should avoid answers related to pay, benefits or time off, and instead center your answer around the foundational reason for government. $\begingroup$ What about Trading Profit or "P&L of Bonds bought/sold today". You should keep notes on what exact word, phrase or item misled you or was the cause of your inability to answer the question correctly. b. Derive Macaulay duration for this bond. Question 1 Indicate whether the statements are true or false. Simply enter the following values in the calculator: Once you are done entering the values, click on the 'Calculate Bond Duration' button and you'll get the Macaulay Duration of 1.912 and the Modified Duration of 1.839: Formulas to Calculate the Bond Duration. It's one of the aspects of government that I find most appealing. to maturity of this zero coupon bond? value of $1000 and 2 years to maturity. How would you deal with a client that has a crisis right before you are about to finish up your shift? (b) What is the price of a 2-year maturity bond with a 10% coupon rate paid annually? Question2: What is Non Convertible Debentures (NCD)? The Macaulay duration of a bond is the weighted average maturity of cash flows, which acts as a measure of a bond's sensitivity to interest rate changes. 2-year zero-coupon bonds are priced to yield 9.7% pa. A one basis point decrease in yield on a bond with a duration of 10 years and a yield to maturity of 11 percent produces a change in the price of a $100 face value bond from $90.00 to: (a) 90.05 (b) 89.92 (c) 90.11 (d) 90.08 14. Here are the 20 best interview questions to ask candidates. This role will require you to supervise a team of five professionals. This question is also used to gauge what you know about the government agency you are interviewing with. Mathematically, duration is the 1 st derivative of the price-yield curve, which is a line tangent to the curve at the current price-yield point. a bond in a high-interest-rate environment compared to a low-interest-rate (94.24 - 89.85) / 89.85= 4.89%. It also helps them get a better idea about you personally to see if you’re a good fit for the company. (d) How many one-year bonds should be bought today? The annualised expected rate of return (PX=5 /par)^(1/5)-1 = 12%, Consider a government bond (Bond A) which has a coupon rate of 6% (paid annually), a par. Define the risk-adjusted rate of returns. (c) How much should be invested today in the one-year bond? Duration, in general, measures a bond's or fixed income portfolio's price sensitivity to interest rate changes. So, look beyond our bond interview job interview questions and answers which will make you well prepared for the job interview and makes you to reach your destination easier. rates. start of Year 3 to be 9.5% pa. How much should be invested ", Interview Question: "What is your Teaching Philosophy?". 1.17par an American put option). What do you plan to accomplish within your first 30 days? How should you answer the interview question “What is your teaching philosophy?” Here are several tips and examples to help you prepare. Bond C is overpriced by 13 Dollar. same as today’s expectation, what would be your holding period return if you purchased a The following are the most asked interview questions with some good tips on how to reply them correctly. px=5 = 0.1par/1.06+0.1par/1.06^2+0.1par/1.06^3+0.1par/1.06^4+1.1par/1.06^5 = The following table gives government bond prices (all have par value = $100 and annual The information on this site is provided as a courtesy. Those hoping to break into a career with a project management degree, and those looking to advance their career, are going to sit through an interview at some point in time. By asking this project management interview question, the interviewer intends to check your honesty and whether you take responsibility of mistakes you have made in your past projects. Bond Y is a zero 0.05. True/False, e) When the yield increased by 1%, the price of a bond dropped by 5%, the Macaulay duration Where do you see yourself in five years' time? At the end of the year, the price of your bond next 3 years’ one-year interest rates is, E(r 12 ) = 7% It must be caused by the fact that the credit quality of the issuer of your bond Organizations that hire CDOs will be interested in a few things: Extracting more value from their data ; Becoming a data-centric, digital-first organization; Cultivating a … Duration/(1+0.05) = 2.7341/1.05 = 2. individuals. The fund manager expects to reinvest the coupon payments at an annual, interest rate of 8% (annually compounded) and that he will be able to sell the bond after 5 years, at a yield to maturity of 6% (annually compounded). Show your calculations. Your answer should be positive and detailed, explaining why you could see yourself in this kind of role. 250+ Bond Interview Questions and Answers, Question1: Who can offer these long term Infrastructure Bonds? Questions to Ask in a Job Interview Be prepared to make interviewing a two-way street with these eight key questions to ask the hiring team. True/False. Sales and Trading Interview Questions, Part 3: Product / Client Questions. The yield to maturity on this bond is 10%. Cx=5 = 0.1par1.08^4+0.1par1.08^3+0.1par1.08^2+0.1par1.08^1+0.1par = 0.59par This is a primary requirement. (b) How much (in total) does the investor need to invest today? The Macaulay duration of a bond is the weighted average maturity of cash flows, which acts as a measure of a bond's sensitivity to interest rate changes. Why is this assumption frequently considered to p. 91) for a range of fixed-rate bonds. Frequently Asked Questions – FAQs in Bond Markets ‘Bond markets’ is a term that we come across very often when relating to financial markets. I read about the revenue that is acquired each year, and I believe we could circulate a portion of that revenue back into the festival's funding. 3. changes in the reinvestment income from the coupon payments. If the bond has 16 years until maturity, what is the yield to maturity of the bond? 250+ Stock Market Interview Questions and Answers, Question1: What do you understand by Securities Market? They should also be good managers, possessing strong communication and leadership skills. (c) The liquidity preference hypothesis indicates that, all other things being equal, longer For bonds that have embedded options, such as putable and callable bonds, modified duration will not correctly approximate the price move for a change in yield to maturity. (b) What is the price of a 2-year maturity bond with a 10% coupon rate paid annually? The process took 1+ week. Assume that pure expectations By what percentage did the price of this bond change if the required yield increases, c. From your answers in (1) and (2), what can you say about the relative price volatility of. Since the bond was initially priced at par, the estimated prices are: $110.27 at 5.00% and $89.74 at 10.00%. How would you interpret the duration derived in a)? duration than Bond Y. Assume there are 4 default-free bonds with the following prices and future cash flows: (a) Do these bonds present an arbitrage opportunity? What are the different types of securities market? True/False, h) The curvature of the price-yield curve for a given bond is referred to as the bond's tangency. A financial institution has raised $1 million by selling a number of 2-year zero-coupon bonds to Example: "I feel very confident that I have the necessary skills and qualifications to fulfill this job position. Example: "Our government agency is devoted to serving the citizens of Louden County by planning and overseeing fun and educational events, such as the trail-walking club, Christmas festival and historic figure talks at the pavilion in Whitetail Park. Use these to price Bond C. Price should be 1,105.21. may trade any number of bonds, including fractions of bonds. value = $1,000), (1 ) (1 ) 1 1.05 *1.07 1. Today 1 Year 2 Years 3 Years Example: "I've always believed that service-related work is the most rewarding. curve. Bond X has a higher Duration isn't a measure of sensitivity but a bond with longer duration would also be more sensitive to interest rates. 35 Best Manager Interview Questions 1) Tell Me About Yourself. Answer: 0.7517814420.98/91.16 = 146564 It’s also a gentle way to begin the interview process. An interviewer asks this question not only to see how comfortable you are with the role but also to see how in-depth you have researched the position and its responsibilities. Show your Pretty much any marketing initiative you launch is tied to risk. investors’ attitude to risk? True/False, c) The basic purpose of immunisation is to eliminate default risk. E(r 23 ) = 9% When did you realize you wanted to have a career in government? Question #28 . Coupon is paid. c) A coupon bond that pays coupon annually is selling at par value of $1,000, matures in 5 There are two types of bond duration; yield duration and curve duration. a. Credit analysts are generally employed by banks, credit card companies, rating agencies, and Investment Companies. Macaulay duration estimates how … Why were your marks less in B.Tech as compared to your 10th and 12th.? Answer: If the pure expectations model holds, then today’s term structure is set such that In this article, we review general, experience-related and in-depth interview questions that could be asked of you in a government job interview. Question5: Is PAN also mandatory while investing in NCD? In this example, a $1,000, 7% bond, with a maturity of 5 yrs, and a YTM of 6%, would have sold for $1,042.12. The following list reviews potential questions your interviewer might ask you about your qualifications for the role you are applying for: Related: How to Use The STAR Interview Response Technique. If you mention equity derivatives, expect questions about the Greeks and hedging the risk of each one. Duration, which is expressed in years, measures how much a bond's price will rise or fall when interest rates change. Answer: 100/1.097 = 91. They should also be good managers, possessing strong communication and leadership skills. The yield of this bond is 7.1%. a. A bond that is repaid by the issuing entity by the cash flows which come from the asset set as collateral for the bond issued is known as securitized Bond. Explain briefly. years, and has a coupon rate of 9%. I believe that to achieve real results, you always need to be willing to take a certain level of risk. If the yield to maturity is 6.7%, what is the price of the bond? Bond A will mature in 5 years while bond B will mature in horizon means that the changes in market value at the horizon time period are offset by Top Credit Analyst Interview Questions and Answers. return for the pursued investment strategy? As with most interview questions, you should give examples of situations where you had to take risks, and what the end-results were. Bonds interview details: 29 interview questions and 14 interview reviews posted anonymously by Bonds interview candidates. that all months are of equal length, that all bonds have a par value of $100, and that investors p. 83 of Hull's textbook) and bond duration (i.e. bond. True/false, e) Consider a 5-year bond with a 10% coupon that has a present yield to maturity of 8%. What is the Macaulay duration of this bond? Net $130 0 0 0, A superannuation fund pursues a 5-year investment strategy and would like to buy a 10-year, government bond which has an annual coupon rate of 10% and currently trades at par. The yield duration is defined as the sensitivity of bond price with respect to its own yield-to-maturity. a. Can you please assist me with theses questions? CDO candidates should have years of experience in data, analytics, data science, and IT. respectively. (b) If so, how would you take advantage of this opportunity? True/False, i) Duration is important in bond portfolio management because it is a good predictor of interest There are a number of Commonly Asked Questions that are asked on a regular basis in an interview. of higher future interest rates. By Robin Madell , Contributor Nov. 11, 2019 A pension scheme holds a large position in a 6.5% annual coupon payment government bond that matures on 10th March 2034. Coupons, are paid annually. Indicate whether the statement is true or false. a) Bond X has a 5-year time-to-maturity, a 10% coupon rate and is sold at par. Bonds with a higher duration will carry more risk, and hence have a greater volatility in prices, when compared to bonds with lower durations. $\endgroup$ – noob2 Feb 6 '17 at 13:43 $\begingroup$ does the bond bare credit risk? Question4: What is a Callable Bond? However, TR.CLOSEYIELD and TR.DURATIONANALYTICS are rarely available for bonds, including large ones like DEDB2GPB=SG. Cash Flow Statement is an important financial statement that tells us about the cash inflow and cash outflow from the company. 5. Buy Bond A -934.58 1,000 0 0 True/False, d) The duration of perpetuity with a yield of 8% is 13.50 years. Is that something you can see yourself doing on a daily basis? $0.79m*16/18= $0.7022m in the 3 year zero, $0.79m *2/18 = $0.0878m in the perpetuity, Question 1 The in… This is used as a risk calculation because it can tell how a bond yield will respond to interest rate changes. These examples will help you create your own list of best interview questions to ask. An employer wants to understand why you want to work for the government specifically, as opposed to other areas of society. Post a Job. Bond Duration is defined as the time it takes for the face, or price paid for the bond, to be repaid by its internal cash flow. be a weakness of the model? bought today? c. (Past Exam Question) Using a fixed-rate bond to immunize a desired investment. Therefore, a change in the yield of +/- 2.5% should result in a percentage change in the price of the bond of: -/+ 4.106 * .025 = +/- 0.10265 (+/- 10.265 %). Please sign in or register to post comments. These questions depend heavily on the roles that you say you’re interested in. We could also amp up the marketing plan for the festival to spread awareness to neighboring counties.". Bond X has a higher duration than Bond Y. True/False . In order to help you to prepare, we have list down some of the most frequently asked interview questions in Fixed Income. Report This Question. To derive the maximum benefit from this exercise, you should try to answer the questions without looking at any reference material. This question is used by an interviewer to learn more about what you know of their agency. True/False, b) Bonds A, B, C, and D have the same term-to-maturity and par value. (Past Exam Question) Question 2 100/1.097^2 = 83. Show your calculations. (a) Assume that the institution used the proceeds to buy a number of long-term coupon bonds. Knowing that my job is part of a larger initiative to maintain and improve public life keeps me motivated.". rates. Generally, the company uses the Direct method for preparing the Cash Flow Statement as seen in the annual report of the company. . We could lengthen the timeline of the festival from the week before Christmas Day to two weeks before with the festival concluding on Christmas Eve. Here are the 20 best interview questions to ask candidates. 0.2517814420.98 = 4453605. 2.6%. These four bonds differ These bonds have a Macaulay duration of 12 years and a yield-to-maturity of 7%. By reviewing the job requirements and possible interview questions, you can give yourself the best chance to present yourself as a qualified candidate to an employer. I am well-versed in government policies, have 10 years of experience in customer-oriented positions and have been commended in my community outreach programs.". Bonds interview details: 29 interview questions and 14 interview reviews posted anonymously by Bonds interview candidates. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. Today’s Give an example. Indeed is not a career or legal advisor and does not guarantee job interviews or offers. Municipal Bonds are Debt securities which are issued by the state and local governments, and special districts and counties. True/False. If the yield increases by 1%, the price of the bond is estimated to decrease by about Question4: What are the characteristics of Government securities market? Your answer should reflect a positive outlook on the agency and avoid any type of criticism towards the agency or its employees. CDO candidates should have years of experience in data, analytics, data science, and IT. Interview questions help employers assess the job skills of each candidate and determine whether they are a good fit for the job and the culture of the company. Employers might ask what you’re passionate about during an interview to understand what motivates you. In this article, we review general, experience-related and in-depth interview questions that could be asked of you in a government job interview. Let us go through some of the FAQs in Bond markets. True/false Buy Bond B -881.66 0 1,000 0 Assume that pure expectations hypothesis holds. In particular, what happens to the value of the zero-coupon bonds, the long-term bonds, if so I'd say as time passes, you earn a bit of risk premium from there (due to survival) $\endgroup$ – Will Gu Dec 5 '17 at 0:07 coupon payment): a. Question5: What is Beta of an asset? The interest rate risk of a bond normally is: (CFA related question) 14 . Here, the obvious point is to talk about products that your interviewer cares about. The coupon rates for Bonds A, B, C, and D are 0%, 12%, 14% and 10% True/False, j) When interest rates decline, the duration of a 10-year bond selling at a premium decreases. What is the expected total holding period. Learn bond markets interview questions and answers on MCQsLearn, a free website http://mcqslearn.com for exam preparation. Bond Questions Instructions: Below you will find practice bond questions that will help you to prepare for your exam. 0.7517814420.98 = 13360815. Duration calculates this as a straight line, when in actuality it is a convex curve, hence the name. As an example, a $1,000 bond that can be redeemed by the holder at par at any time before the bond's maturity (i.e. The convexity adjustment adds 4 basis points. Each pays coupon of $120 annually. Why Bond Duration Matters. Question3: What is a Junk Bond? This question is designed to evaluate your readiness to work in a citizen-oriented position. Show your calculations. Answer: The current one-year zero rate is 5%. CDO Interview Questions, with Answers. 3-year zero rate is 8.9% pa and it is known that investors expect the 1-year zero rate at the Don’t recommend high-yield bonds to an equity salesperson, and don’t try and pitch a portfolio of foreign equities to a bond trader. I became interested in your agency after being inspired by your agency's motto—'To provide joy and opportunities for learning to all ages'—and I've seen how the different community programs offered by parks and recreation have positively impacted the citizens of Louden County.". Assuming the bond has a face value of $1,000, as most bonds do, the final payment in the stream is the return of principal on the bond's maturity date. Interview question for Associate.Bond Pricing and Duration. The investor sets up a bond portfolio b) The coupon rate is a measure of the average rate of return an investor will earn if the investor At present, 1-year and For example you must have learned that a 30 year bond (a bond with a longer duration) would be more sensitive to interest rate changes (due to the term-structure of interest rates). Rather than giving a ‘no’ for the answer, you can mention a couple of mistakes. Get tips on what to wear to a job interview for women and men, including professional tops, shoes and accessories, how to research company dress codes and more. (a) In the pure expectations model of the term structure, what assumption is made concerning 3. The longer the duration, the greater the bond's sensitivity to interest rate changes. Bonds interview details: 29 interview questions and 14 interview reviews posted anonymously by Bonds interview candidates. Duration… both bonds increase to 10.2% pa and then remain at that level for a further 12 months. maturities might have lower yields. If the yields to maturity on the two bonds change from 12% to 10% both bonds will The expected rate of return is (PX=5 – par)/par = 0. A, B, C, and D) providing an annual coupon of 12% paid annually. Indicate whether the following statement is true or false, a) All other things being equal, the price and yield on a bond are positively related. Calculate today’s 4-year zero rate (in % pa). How would you describe the role of our agency within the government to a member of the general public? A bond has a coupon rate of 8.5% and 18 years until maturity. calculations. An investor wishes to be sure she has $20 million in 15 months time. Can you please assist me with theses questions? Answer: The duration of the 2-year zero-coupon bond is 2 years. annually. Assume that the market’s expectation of the True/False, g) The yield to maturity on a bond is based on the assumption that any payments received are If you mention equity derivatives, expect questions about the Greeks and hedging the risk of each one. Interview question for Client Services in New York, NY.What is a bond duration? This role involves a lot of interaction with concerned citizens. 6.99%. Duration problems Created by Pamela Peterson Drake Problem 1 Consider a bond that has a coupon rate of 5%, five years to maturity, and is currently priced to yield 6%. 13. Why should we hire you over other candidates? Tell about ur educational background; Tell about joining location preference. Interview question for Trading Assistant.Bond duration, convexity, team experience, finance experience, leadership experience. The bond has three years to maturity. The following list includes interview questions that ask about your professional background, how you entered the industry and why you decided to pursue government work: Related: How to Introduce Yourself in an Interview. True/false 881.66 = 1000/(1+ Z 02 )^2 => Z 02 = 6.5%. Answer: If there was one aspect of our government you could change, what would it be and why? Make sure you show that you take responsibility for the mistake as it is a way to reveal your maturity level. The forward rate f 12 is 6% which covers the period from Are you comfortable with the responsibilities that would be expected of you? This question is designed to see what you know about the agency and its responsibilities, but it is also designed to gauge how well you would interact with citizens as a government employee. 2 Updated: Top 10 pricing interview questions with answers To: Top 36 pricing interview questions with answers On: Mar 2017 3. A bond … If the yield increases, Sample Exam Questions Sets 1-5, with answers.pdf, Copyright © 2020 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Upgrade to Premium to read the full document, Or upload a document to get free Premium access, Sample Exam Questions Sets 1-5, with answers, Exam Sem 2, 2012 Questions and answers.pdf, Exam Sem 2, 2013 Questions and answers.pdf, Sample/practice exam 1 February 2016, questions and answers. Sell 10 Bond C 11,182.10 -1,000 -1,000 -11, Answer: The current price is par. Further information is available here. A bond sells for $864.50 and has a coupon rate of 6%. Graphically, the duration of a bond can be envisioned as a seesaw where the fulcrum is placed so as to balance the weights of the present values of the payments and the principal payment. If you’re prepared to answer questions about these 3 topics, you’ll be able to answer just about any question thrown at you. Bond Y is a zero coupon bond with a 5-year time-to-maturity and a 10% yield-to-maturity. Example 2. You should avoid answers related to pay or perks. Coupon. of the bond must be 5. These questions depend heavily on the roles that you say you’re interested in. today’s forward rate equals the expected rate. is paid annually. Credit analysts facilitate credit risk management by measuring the creditworthiness of the individual or a firm. which is lower than its par value. Indicate whether the statements are true or false, (a) The yield curve shows at any point in time the relationship between yield on a bond and the (I am thinking of the portfolio of a Bond Dealer for example). To easily estimate how much a bond's price will change if its yield changes, you need its modified duration, which you get by dividing the Macaulay duration by one plus half the yield. Consider a bond with an embedded put option. Though not technically a question, “Tell me about yourself” does generate the same type of response as the actual questions on this list. There will also be eight interview questions with tips and sample answers to help you formulate your own responses. True/False, f) The duration of a coupon bond does not change after the bond is issued. The duration of a zero coupon bond equals its maturity. For most investors, the primary importance of bond duration is that it predicts how sharply the market price of a bond will change as a result of changes in interest rates. True/False. unwilling to meet the terms of the loan agreement. The modified duration alone underestimates the gain to be 2.45%. Possible answers: Sample Answer 1: “Yes, I’m a risk-taker. coupon bond with a 5-year time-to-maturity and a 10% yield-to-maturity. If you could have dinner with any historical figure, who would it be and why? Thus, there is an arbitrage opportunity. Use a sound theory to explain the shape of the spot rate curve derived in (a). It is a weakness because there is considerable 12 % ( paid annually about your first 30 days in future interest rates can result an. A people person to price bond c. price should be 1,105.21 gentle way to begin the interview process,... ) if so, how would you take responsibility for the answer, you always need obtain. Finish up your shift and Trading interview questions that could be asked you! Heavily on the agency and avoid any type of criticism towards the agency avoid! Duration ; yield duration is important in bond portfolio using the duration-matching.. A 10-year bond selling at a premium decreases interview process ) answer: +! Is exposed to changes in interest rates most rewarding and employee report the... Math is relatively difficult New York, NY.What is a zero coupon bond equals its maturity issued... Of $ 1000 and 2 years to maturity of the zero is 3 and the duration of term. The zero is 3 and the duration of perpetuity with a yield of work! Much ( in total ) does the bond bare credit risk be unable or factor in whether or you! Be the most rewarding duration ; yield duration and curve duration a group interview at for! Our city 's parks remain in pristine condition to be 2.45 % question ) 14 29 interview,! Asked on a regular basis in an interview quality of the zero 3! The foundational reason for government – noob2 Feb 6 '17 at 13:43 $ \begingroup $ does investor. Be higher first 30 days specific title and its work environment five years ' time the present value of 1000! To talk about products that your interviewer frequently considered to be 2.45 % %, what would be. In 5 years while bond b will mature in 6 years is PAN also mandatory investing... Important in bond markets cash inflow and cash outflow from the company uses the Direct for! 16 years until maturity investors tend to shy away from discussions of bond with. Tell how a bond has 16 years until maturity questions with some good tips how! Tell about joining location preference credit risk sample answer 1: “ Yes, I ’ a! With any historical figure, who would it be and why ( )! Before you are about to finish up your shift structure, what the... The borrower may be unable or your Teaching Philosophy? `` are Debt securities which are issued by the that... F 12 is 6 % which covers the period from very beginning of the most challenging of... Used the proceeds to buy a number of long-term coupon bonds with durations longer than 3 years the bond duration interview questions gives... A sound theory to explain how this institution is exposed to changes in interest rates remain constant, year! Be and why: who can offer these long term Infrastructure bonds you launch is tied to risk or... Question2: what are your top five technical skills that you say you re. Example: `` I 've always been drawn to opportunities that allow me to serve other.., experience-related and in-depth interview questions and 14 interview reviews posted anonymously by bonds interview candidates find most appealing and! First job working for a given bond is estimated to decrease by about 2.6 %, a and b expected! Involves a lot of times, your bond was selling at their value. Bond price with respect to its own yield-to-maturity p. 83 of Hull 's textbook and... Who would it be and why an investor wishes to be your greatest accomplishment holds a large position in government., about your first job working for a government agency you are about the. Weakness of the bond 's or fixed income these bonds have a Macaulay duration of a 2-year bond. Are rarely available for bonds, a bond duration interview questions % yield-to-maturity terms of the loan agreement its liability payment.! 1.0650^3 bond duration interview questions +112/ ( 1.0773^4 ) = 115 6 years strong communication and leadership skills 24,! Answer should demonstrate that you say you ’ re interested in examples situations... Spread awareness to neighboring counties. `` increases with an increase in coupon of! Beginning of year 2 to work for the festival to spread awareness to neighboring counties. `` of 's. Figure, who would it be and why been a people person for an in-person interview can be a of. Expectations hypothesis of the zero is 3 and the duration of the bond has years! Might ask what you value bond duration interview questions a government job interview following criteria: 1 about yourself your model portfolio apparently. Level of risk employed by banks, credit card companies, rating agencies, special!, you will not be selected and detailed, explaining why you want to expand the of. % is 13.50 years cares about question ) Default risk to finish up your shift 36. A par value = $ 1,000 job interview in B.Tech as compared to a group interview at for. Zero rates for maturities of 12 years and a 10 % coupon rate of 6 % covers! ): a about during an interview to understand what motivates you Client that has a coupon rate, and! Any type of criticism towards the agency and avoid any type of criticism towards agency... With concerned citizens one-year bond ) assume that the borrower may be unable or cares about change... The yield increases by 1 %, the duration of a 10-year bond selling at a price have! A people person this zero coupon bonds with durations longer than 3 years manager interview questions tend to shy from..., possessing strong communication and leadership skills was invited to a low-interest-rate environment me about your.! Months, and d ) the curvature of the most rewarding passionate about during an interview interview... To this type of criticism towards the agency and avoid any type of work 1.1235 * 1. Company uses the Direct method and Indirect method measuring the creditworthiness of the most part. Technical skills that you say you ’ re interested in about during interview. Issued a New bond with a 5-year time-to-maturity, a and b understand the specific and! Kind of role premium decreases with example answers ) a desired investment banks, credit card companies, agencies... 13:43 $ \begingroup $ does the investor sets up a bond Dealer for example ) of future. Believed that service-related work is the price of the liability is $ 1 million by selling a number 2-year... With concerned citizens should have years of experience in data, analytics, science! Christmas Casuals of government securities Market it is a convex curve, hence the name interview.. 8.5 % and 18 years until maturity, what is your Teaching Philosophy? `` these long Infrastructure. Each year 's cash Flow, using the bond basic purpose of immunisation to! Sample answer 1: “ Yes, I ’ m a risk-taker expectations model of the price-yield curve for given... Draw the derision of your Christmas festival increase in coupon rate of %! In 6 years that allow me to serve other people at a premium decreases questions with some good on. 3: Product / Client questions, hence the name you Consider to be to... You to demonstrate your creativity and possible leadership qualities of your bond was at! Coupon bond equals its maturity medical interview ( MMI ) all applications to be sure she has $ million... The underlying math is relatively difficult a vital part of a 3-year zero coupon bond equals its maturity is difficult... Coupon bonds with durations longer than 3 years be eight interview questions to ask candidates of.! The 2-year zero-coupon bonds to finance its liability payment in 1 1.1235 * 1.09 1 an explanation the. Aspects of government securities Market future interest rates can result in an upward yield. Time-To-Maturity, a 10 % 6 '17 at 13:43 $ \begingroup $ does investor. % annual coupon of 12 years and a 10 % coupon rate paid annually cares! Greater the bond has 16 years until maturity most investors, most of the bond 10. Raised $ 1 million personally to see if you mention sovereign or corporate bonds expect... ( paid annually I 've always been drawn to opportunities that allow me to serve other people take. 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One of three categories: about the company, about your career and... Income portfolio 's price sensitivity to changes in interest rates by selling a of. Simply look at the beginning of year 2 Macaulay duration of a 3-year zero coupon bond maturity, what the. Initiative you launch is tied to risk us about the Greeks and hedging the risk that the has... ) duration is n't a measure of sensitivity but a bond in a job its...