nismmocktest.in

Question 1 reset

Futures contracts can be used to modify the exposure portfolio’s Modified Duration in the following way/s:

To increase portfolio’s Modified Duration

To decrease portfolio’s Modified Duration

Either (a) or (b)

Question 2 reset

The “fixed” in fixed-income securities implies that Cash flows timing is fixed.

True

False

Question 3 reset

Tax-deductibility of interest expense makes debt an essential component of capital.

True

False

Question 4 reset

Credit spread is the price of Credit risk.

True

False

Question 5 reset

If the long-term rate is 10% and short-term rate is 8%, the shape of term structure of rates is Normal / positive.

True

False

Question 6 reset

If both the long-term rate and short term rate is 10%, the shape of term structure of rates is Flat.

True

False

Question 7 reset

The concept of accrued interest applies to Coupon bond.

True

False

Question 8 reset

Bond rated AAA has lower credit risk.

True

False

Question 9 reset

Yield-to-maturity (YTM) is a correct measure of the realized return for a zero-coupon bond.

True

False

Question 10 reset

When interest rates decrease, the price of a fixed-rate bond increases.

True

False

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