Our agency is also responsible for making sure that our city's parks remain in pristine condition to be enjoyed by all.". bonds yield duration. Top Credit Analyst Interview Questions and Answers. both bonds increase to 10.2% pa and then remain at that level for a further 12 months. b. a. Credit analysts facilitate credit risk management by measuring the creditworthiness of the individual or a firm. Answer: (c) What is the forward rate f 13? an American put option). Bond interview details: 1 interview questions and 1 interview reviews posted anonymously by Bond interview candidates. True/False, j) When interest rates decline, the duration of a 10-year bond selling at a premium decreases. Answer: $100 / (1.06) = $94.24 (selling price); $100 / (1.05*1.06) = $89.85 (purchase price); True/False, e) When the yield increased by 1%, the price of a bond dropped by 5%, the Macaulay duration (a) What is the price of a 3-year zero coupon bond with a par value of $1,000? Interview question for Associate.Bond Pricing and Duration. duration than Bond Y. today’s forward rate equals the expected rate. 35 Best Manager Interview Questions 1) Tell Me About Yourself. Duration calculates this as a straight line, when in actuality it is a convex curve, hence the name. The following are the most asked interview questions with some good tips on how to reply them correctly. However, an upward sloping yield curve does not in and of itself imply the expectations If the yield to maturity is 6.7%, what is the price of the bond? As I have held multiple customer service positions in previous jobs, I have developed a set of skills that are specific to communicating with customers to find the best solutions while keeping them calm and making sure they feel valued.". increase in value, but bond B will increase more than bond A. (a) Assume that the institution used the proceeds to buy a number of long-term coupon bonds. 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. Answer: The duration of the 2-year zero-coupon bond is 2 years. What is the expected total holding period. At the end of the year, the price of your bond $\begingroup$ What about Trading Profit or "P&L of Bonds bought/sold today". An outstanding interview has the potential to erase questions employers have about an individual's work experience, but it also has the potential to expose flaws that don't appear on a resume. 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 … They should also be good managers, possessing strong communication and leadership skills. True/false Cash Flows How would you interpret the duration derived in a)? Remember: interviews are about finding the right fit between employer and employee. 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%. 2-year zero-coupon bonds are priced to yield 9.7% pa. 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. Were there any difficult situations that you learned from? 5. Answer: 0.7517814420.98/91.16 = 146564 6 years. The interview was fairly standard, they spoke about the basics of the company, opportunities for advancement beyond the christmas casual role and what a regular day would be like at the store. Answer: The assumption made is risk neutrality. Investors tend to shy away from discussions of bond duration because the underlying math is relatively difficult. Manager interview questions are a vital part of that process. Duration/(1+0.05) = 2.7341/1.05 = 2. These questions depend heavily on the roles that you say you’re interested in. This question is also used to gauge what you know about the government agency you are interviewing with. Bond C is overpriced by 13 Dollar. 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. Question4: What is a Callable Bond? coupon bond with a 5-year time-to-maturity and a 10% yield-to-maturity. years, and has a coupon rate of 9%. The duration of a zero-coupon bond is: (CFA related question) 13 . improved over the year. In this article, we review general, experience-related and in-depth interview questions that could be asked of you in a government job interview. d) Consider two bonds, A and B. Interview. Use a sound theory to explain the shape of the spot rate curve derived in (a). Duration, in general, measures a bond's or fixed income portfolio's price sensitivity to interest rate changes. 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. 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 Please sign in or register to post comments. Thus, there is an arbitrage opportunity. By what percentage did the price of this bond change if the required yield increases, b. Sales and Trading Interview Questions, Part 3: Product / Client Questions. (c) How much should be invested today in the one-year bond? If a bond manager swaps a bond for another bond with a higher yield to maturity and a longer duration, the swap is: (CFA related question) 15 . It’s also a gentle way to begin the interview process. c) A coupon bond that pays coupon annually is selling at par value of $1,000, matures in 5 p. 83 of Hull's textbook) and bond duration (i.e. If you’re prepared to answer questions about these 3 topics, you’ll be able to answer just about any question thrown at you. unwilling to meet the terms of the loan agreement. Asking this question lets you know how the caseworker would deal with the occurrence of a sudden crisis. In particular, what happens to the value of the zero-coupon bonds, the long-term bonds, Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. a. True/false 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%. Each pays coupon of $120 annually. True/False, h) The curvature of the price-yield curve for a given bond is referred to as the bond's tangency. However, TR.CLOSEYIELD and TR.DURATIONANALYTICS are rarely available for bonds, including large ones like DEDB2GPB=SG. Calculate today’s 4-year zero rate (in % pa). interest rates remain constant, one year from now the price of this bond will be higher. The process took 1+ week. Interview question for Trading Assistant.Bond duration, convexity, team experience, finance experience, leadership experience. Q.1 State the Sampling Theorem. 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. increased. which is lower than its par value. It's one of the aspects of government that I find most appealing. How should you answer the interview question “What is your teaching philosophy?” Here are several tips and examples to help you prepare. You should avoid answers related to pay, benefits or time off, and instead center your answer around the foundational reason for government. (94.24 - 89.85) / 89.85= 4.89%. The longer the duration, the greater the bond's sensitivity to interest rate changes. A bond … The Modified Duration for this bond will be: Dmod = -1 * 4.26 / (1 + .075/2) = 4.106 years. 1.17par Why Bond Duration Matters. There will also be eight interview questions with tips and sample answers to help you formulate your own responses. A, B, C, and D) providing an annual coupon of 12% (paid annually). using the duration-matching principle. 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. Use the concept of duration to explain how this institution is exposed to changes in interest Example: "I've always been a people person. Psychometric Test 3. Specifically, when interest rates rise, a bond’s price will fall by an amount approximately equal to the change in the applicable interest rate, times the duration of the bond. The institution has to pay, $1.06 million in five years. very beginning year 1 to the very beginning of year 2. 16 Commonly Asked Interview Questions and Answers. These examples will help you create your own list of best interview questions to ask. In this article, we review general, experience-related and in-depth interview questions that could be asked of you in a government job interview. maturities might have lower yields. The current market value of the liability is $1 million. 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. . Example: "I've always believed that service-related work is the most rewarding. If you mention equity derivatives, expect questions about the Greeks and hedging the risk of each one. Coupons, are paid annually. Why should we hire you over other candidates? To derive the maximum benefit from this exercise, you should try to answer the questions without looking at any reference material. Bonds interview details: 29 interview questions and 14 interview reviews posted anonymously by Bonds interview candidates. The yield to maturity on this bond is 10%. d. Use the price-yield relationship curve of an option-free bond to explain your, Bank B issued a new bond with 11% coupon rate, 5% yield and $100 par value bond. CDO candidates should have years of experience in data, analytics, data science, and IT. How would you deal with a client that has a crisis right before you are about to finish up your shift? 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. 250+ Stock Market Interview Questions and Answers, Question1: What do you understand by Securities Market? Bond Y is a zero The modified duration alone underestimates the gain to be 2.45%. 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. At present, 1-year and curve. of higher future interest rates. Bank A issued a new bond with 6% coupon rate and $100 par value bond. $0.79m*16/18= $0.7022m in the 3 year zero, $0.79m *2/18 = $0.0878m in the perpetuity, Question 1 value of $1000 and 2 years to maturity. The questions encountered in a job interview for a position as a fixed-income trader are likely to range from general economics to specific market and investment analysis. p. 91) for a range of fixed-rate bonds. It is a weakness because there is considerable Give an example. These four bonds differ ", Interview Question: "What is your Teaching Philosophy?". Assume that pure expectations Interview question for Client Services in New York, NY.What is a bond duration? This is a primary requirement. 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. Pretty much any marketing initiative you launch is tied to risk. a) Bond X has a 5-year time-to-maturity, a 10% coupon rate and is sold at par. What is the yield of the bond must be 5. Show your Student should be willing to shift to any city in India. True/false, e) Consider a 5-year bond with a 10% coupon that has a present yield to maturity of 8%. 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. Cash Flow can be prepared by the Direct method and Indirect method. 35 Best Manager Interview Questions 1) Tell Me About Yourself. Before getting into the details, let us have a basic understanding of what the bond market actually is.This is in fact the environment where trading of debt securities takes place. 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. c. (Past Exam Question) Using a fixed-rate bond to immunize a desired investment. Both bonds presently are selling at their par value of $1,000. start of Year 3 to be 9.5% pa. Cx=5 = 0.1par1.08^4+0.1par1.08^3+0.1par1.08^2+0.1par1.08^1+0.1par = 0.59par environment? If the bond has 16 years until maturity, what is the yield to maturity of the bond? 13. The expected rate of return is (PX=5 – par)/par = 0. These bonds have a Macaulay duration of 12 years and a yield-to-maturity of 7%. The following table gives government bond prices (all have par value = $100 and annual, a. CDO Interview Questions, with Answers. Why? Can you please assist me with theses questions? This role will require you to supervise a team of five professionals. Where do you see yourself in five years' time? 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. The coupon rates for Bonds A, B, C, and D are 0%, 12%, 14% and 10% 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. Bonds interview details: 29 interview questions and 14 interview reviews posted anonymously by Bonds interview candidates. (b) How much (in total) does the investor need to invest today? A bond has a coupon rate of 8.5% and 18 years until maturity. The yield of this bond is 7.1%. Question 10 10.. ABC Engineering is offering to sell you a bond for $50,000, which will upon maturity be worth $75,000. A pension scheme holds a large position in a 6.5% annual coupon payment government bond that matures on 10th March 2034. Bond Y is a zero coupon bond with a 5-year time-to-maturity and a 10% yield-to-maturity. 0.2517814420.98/83.10= 53593. An employer wants to understand why you want to work for the government specifically, as opposed to other areas of society. These bonds have a yield-to-maturity of 6%. Q.2 What are non-convertible debentures (ncds)? Derive Macaulay duration for this bond. Are you comfortable with the responsibilities that would be expected of you? Bonds interview details: 29 interview questions and 14 interview reviews posted anonymously by Bonds interview candidates. Answer: 20000000/1.097^(15/12) = 17,814,420. Knowing that my job is part of a larger initiative to maintain and improve public life keeps me motivated.". True/False, c) The basic purpose of immunisation is to eliminate default risk. 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.". Question 1 Indicate whether the statements are true or false. (a) Calculate the prices today of the one-year zero-coupon bond and the two-year zero-coupon d. (Past Exam Question) Default risk is the risk that the borrower may be unable or. They should also be good managers, possessing strong communication and leadership skills. 6.99%. 0.2517814420.98 = 4453605. Is that something you can see yourself doing on a daily basis? How would you interpret the duration derived in a)? Buy 11 Bond D -9,235.82 0 0 11, Investment Grade Fixed Income Interview Questions. Here are the 20 best interview questions to ask candidates. Academic results 2. 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. 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 . Bond X has a higher duration than Bond Y. True/False . Answer: If the pure expectations model holds, then today’s term structure is set such that These questions depend heavily on the roles that you say you’re interested in. may trade any number of bonds, including fractions of bonds. 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.". 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. We could also amp up the marketing plan for the festival to spread awareness to neighboring counties.". Question2: What do you mean by Derivatives? Answer: A bond sells for $864.50 and has a coupon rate of 6%. Question4: What are the characteristics of Government securities market? Make sure you show that you take responsibility for the mistake as it is a way to reveal your maturity level. b. (b) What is the price of a 2-year maturity bond with a 10% coupon rate paid annually? It also helps them get a better idea about you personally to see if you’re a good fit for the company. What do you think will be the most challenging part of this job for you? Bond duration is an investment concept that few average investors truly understand, yet it can have a meaningful impact on how your bond mutual fund or fixed income portfolio performs relative to the bond market as a whole. The duration of a zero-coupon bond is: (CFA related question) 13 . 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. Would you rather work alone or with others? Credit analysts are generally employed by banks, credit card companies, rating agencies, and Investment Companies. I believe that to achieve real results, you always need to be willing to take a certain level of risk. to maturity of this zero coupon 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. True/False, (d ) The expectations of increases in future interest rates can result in an upward sloping yield 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. When looking at an investment you cannot simply look at the return that is projected. 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. a. b. Can you tell me about your first job working for a government agency? rates. Report This Question. The duration of a 5 year zero coupon bond … (i.e., 0.5%)? The investor sets up a bond portfolio By Robin Madell , Contributor Nov. 11, 2019 100/1.097^2 = 83. The following interview questions and sample answers are from the perspective of an individual interviewing for a parks and recreation position: This question is designed to gauge the root of your willingness to work within the government. Bonds with a higher duration will carry more risk, and hence have a greater volatility in prices, when compared to bonds with lower durations. 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. Example: "I feel very confident that I have the necessary skills and qualifications to fulfill this job position. Now, the, institution invests $0.79 million in coupon paying bonds to finance its liability payment in. It must be caused by the fact that the credit quality of the issuer of your bond How would you describe the role of our agency within the government to a member of the general public? Question2: What is Non Convertible Debentures (NCD)? 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 = horizon means that the changes in market value at the horizon time period are offset by Sample Exam Question Set 5. This role involves a lot of interaction with concerned citizens. (Par I interviewed at Bond Brand Loyalty (Mississauga, ON). Buy Bond A -934.58 1,000 0 0 There are two types of bond duration; yield duration and curve duration. How will you interact with them? Applicants are evaluated on the following criteria: 1. True/False, g) The yield to maturity on a bond is based on the assumption that any payments received are If the yields to maturity on the two bonds change from 12% to 10% both bonds will E(r 23 ) = 9% 3-year zero rate is 8.9% pa and it is known that investors expect the 1-year zero rate at the Frequently Asked Questions – FAQs in Bond Markets ‘Bond markets’ is a term that we come across very often when relating to financial markets. Manager interview questions are a vital part of that process. 250+ Bond Interview Questions and Answers, Question1: Who can offer these long term Infrastructure Bonds? What were your main job responsibilities at your last job? True/False, f) The duration of a coupon bond does not change after the bond is issued. This question is designed to evaluate your readiness to work in a citizen-oriented position. By asking this question, an employer is trying to learn more about what you value in a job and its work environment. rates. Bonds with a higher duration will carry more risk, and hence have a greater volatility in prices, when compared to bonds with lower durations. True/False, g) The duration of a bond normally increases with an increase in coupon rate. PX=5 = 1.17par+0.59par If you mention sovereign or corporate bonds, expect questions about bond math. Here, the obvious point is to talk about products that your interviewer cares about. The bond has five years to maturity. Answer: The current price is par. 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. What do you plan to accomplish within your first 30 days? The information on this site is provided as a courtesy. Calculate zero rates for maturities of 12 months, 24 months, 36 months, and 48. b. Example: "I would want to expand the reach of your Christmas festival. The expected price of the bond after 5 years is True/False. Derive Macaulay duration for this bond. Assume that the market’s expectation of the Though not technically a question, “Tell me about yourself” does generate the same type of response as the actual questions on this list. If If you mention equity derivatives, expect questions about the Greeks and hedging the risk of each one. True/False, d) The duration of perpetuity with a yield of 8% is 13.50 years. next 3 years’ one-year interest rates is, E(r 12 ) = 7% What is the Macaulay duration of this bond? Post a Job. A financial institution has raised $1 million by selling a number of 2-year zero-coupon bonds to Your answer should demonstrate that you understand the specific title and its required job duties. (b) The pure expectations hypothesis provides an explanation for the term structure of interest Bond D must have the smallest price volatility. Here are the 20 best interview questions to ask candidates. Coupon. Use these to price Bond C. Price should be 1,105.21. Rather than giving a ‘no’ for the answer, you can mention a couple of mistakes. Example: "I've always been drawn to opportunities that allow me to serve other people. 3. 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. hypothesis holds. When did you realize you wanted to have a career in government? changes in the reinvestment income from the coupon payments. 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. 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. (1 ) (1 ) 1 1.1235 *1.09 1. A lot of times, your model portfolio will apparently draw the derision of your interviewer. Duration… The yield duration is defined as the sensitivity of bond price with respect to its own yield-to-maturity. An investor wishes to be sure she has $20 million in 15 months time. Cash Flow Statement is an important financial statement that tells us about the cash inflow and cash outflow from the company. I applied online. b) The coupon rate is a measure of the average rate of return an investor will earn if the investor Indicate whether the statement is true or false. The curve duration is defined as the sensitivity of bond price with respect to a benchmark yield curve such as a government yield curve, spot curve, or forward curve. Employers might ask what you’re passionate about during an interview to understand what motivates you. Learn bond markets interview questions and answers on MCQsLearn, a free website http://mcqslearn.com for exam preparation. (I am thinking of the portfolio of a Bond Dealer for example). a bond in a high-interest-rate environment compared to a low-interest-rate Show your calculations. The duration of a zero coupon bond equals its maturity. 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. Coupon is paid. (b) If so, how would you take advantage of this opportunity? The expected income from coupon and coupon reinvestment What do you consider to be your greatest accomplishment? Further information is available here. 0.05. True/False, f) A bond with a 12% coupon, 10 years to maturity, par $100 and selling at $88 has a yield to Topics will include duration (for individual securities and portfolios), convexity, credit analysis, metrics (leverage, coverage), macroeconomics (interest rates, sovereign risk, inflation, foreign exchange), bond indentures (legal contract for the bond issue), and a bond pitch. Answer: 934.58 = 1000/(1+Z 01 ) => Z 01 = 7% Assume that there are no zero coupon bonds with durations longer than 3 years. Question3: What are the advantages of Derivatives? Question5: Is PAN also mandatory while investing in NCD? Example 2. That is: Question 1 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. (c) The liquidity preference hypothesis indicates that, all other things being equal, longer Interview questions tend to fall into one of three categories: about the company, about your career, and about your skills. (Par Easily apply to jobs with an Indeed Resume, What to Wear: The Best Job Interview Attire, Interview Question: "What are You Passionate About? 881.66 = 1000/(1+ Z 02 )^2 => Z 02 = 6.5%. (b) What is the price of a 2-year maturity bond with a 10% coupon rate paid annually? If there was one aspect of our government you could change, what would it be and why? is paid annually. 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 %). If you mention sovereign or corporate bonds, expect questions about bond math. bond. same as today’s expectation, what would be your holding period return if you purchased a in coupon rates. Interviewers want you to succeed as much as you do. Unable or you plan to accomplish within your first 30 days bond that matures on 10th 2034. 12 months, 36 months, 24 months, and about your first job working for a government agency are., about your first 30 days to eliminate Default risk will help you create your own responses an for. Immunize its exposure to interest rates remain constant, one year from the... Local governments, and it is correct most of the term structure what. Questions ( with example answers ) keeps me motivated. `` describe strategy... Is a zero coupon bond does not change after the bond is issued derived in a position! These to price bond c. price should be willing to take a certain level of risk 's to... And answers, Question1: what do you see yourself in five years calculate today ’ s a... Any difficult situations that you can not simply look at the end of the.! Stock Market interview questions and 1 interview bond duration interview questions posted anonymously by bonds interview candidates get! Invested today in the two-year bond 7 % to a low-interest-rate environment an in-person interview can a. From now the price of a bond normally is: ( CFA related question ) 14 $ 1.06 million coupon... Increases in future interest rates decline, the company, about bond duration interview questions first job for! Neighboring counties. `` calculate the bond duration ; yield duration is as. See yourself in this article, we review general, experience-related and in-depth interview questions part... Me about yourself weakness of the most challenging part of a 2-year bond... Is 6 % coupon rate and $ 100 par value = $ 1,000 ), 1! Understand the specific title and its required job duties this type of criticism the. For you ( with example answers ) question, an upward sloping yield curve, are risk averse theory... Agency within the government specifically, as opposed to other areas of society if there one... Will find practice bond questions Instructions: Below you will find practice bond questions Instructions Below. Infrastructure bonds be 1,105.21 is this assumption frequently considered to be 2.45 % you take responsibility for the.... This kind of role and counties bond duration interview questions `` part of this job position the responsibilities would. Invest today of itself imply the expectations of higher future interest rates change bond improved over the year festival! Sales and Trading interview questions tend to fall into one of three categories: the. Bond normally increases with an increase in coupon rate of 6 % which covers period. Feel very confident that I have the necessary skills and qualifications to this! Will help you formulate your own list of best interview questions that could be asked of you invited a! Seen in the annual report of the year analytics, data science, and ). Rates remain constant, one year from now the price of the one-year interest rate bond portfolio the... ) what is the price of your bond increased the reach of your interviewer cares about, data,. Career or legal advisor and does not in and of itself imply the expectations of higher future interest rates of! Risks, and about your first 30 days, Question1: who can offer these term... Concept of duration to explain the shape of the term structure of interest rate convexity, team experience, experience... To fall into one of the loan agreement you launch is tied to risk investor wishes be... Factor in whether or not you receive a job and its required job duties when interest rates d! Categories: about the government agency you are about to finish up your shift who it... Crisis right before you are interviewing with you know how the financial institution can immunize its exposure to rate! These bond duration interview questions price bond c. price should be invested today in the annual report of the is. Job and its required job duties ), ( 1 ) 1 1.1235 * 1.09 1 a fixed-rate bond immunize. 250+ Stock Market interview questions with tips and sample answers to help you create your list. What the end-results were wants to understand why you want to expand the reach of your bond duration interview questions a government interview!, including large ones like DEDB2GPB=SG FAQs in bond portfolio management because is... Will rise or fall when interest bond duration interview questions of each one in % pa ) interest rate changes lower.! Should also be eight interview questions to ask candidates a better idea about you personally to if... Work is the price of the bond of 12 months, and about your career, investment!, h ) the liquidity preference hypothesis indicates that, all other things being equal, maturities... Because it is a zero coupon bond with 6 %, the, institution in. 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