SIE Exam Lesson 5 Free Quiz: Fixed Income pt. 1 - a podcast by Franz

This is a SIE Exam Lesson 5 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over.
SIE Exam Lesson 5 Free QuizzThis is a SIE Exam Lesson 5 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over.

Questions covered include1. Which of the following is an example of a fixed income investment?
A. bondB. government note
C. collateralized mortgage obligationsD. all of the above

2. In fixed income investments, the par value ___.A. is greater than the maturity value
B. is less than the maturity valueC. is equal to the maturity value
D. varies with the maturity value but with no general trend3. Maturity value is the value the investor gets when his fixed income investment matures.
A. TrueB. False

4. This is the date when the investor gets back the par value of his fixed income investment.A. call date
B. declaration dateC. maturity date
D. payable date5. Fixed income investments have stated interest rates except for ___.
A. serial bondsB. series bonds
C. term bondsD. zero coupon bonds

6. US government bonds have no call features.A. True
B. False7. Sinking funds are ___.
A. bonds that have depreciated its par valueB. a portion of money set aside every year to buy back the issued bonds
C. the difference between the bond’s par value and the yield of maturityD. all of the above

8. Which of the following is associated with collateralized mortgage obligations?A. Ginnie Mae
B. government billC. sinking funds
D. all of the above9. These bonds are bought at a discount and mature at par value.
A. serial bondsB. series bonds

C. term bondsD. zero coupon bonds

10. These are bonds that have varying maturity dates that carry different interest rates.A. serial bonds
B. series bondsC. term bonds
D. zero coupon bondsSIE Exam Lesson 5 Free Quiz: Fixed Income pt. 1: Continued
11. Which of the following does a zero coupon bond have?A. interest rate
B. interest payment dateC. discount
D. all of the above12. Which of the following does a term bond have?
A. interest rateB. interest payment date
C. maturity dateD. all of the above

13. In a zero coupon bond, the difference between the value of the bond when it is bought and the value of the bond when it matures is the calculated yield.A. True
B. False14. Serial bonds are issued in a series of steps according to the cash needs of the issuer.
A. TrueB. False

15. In the normal yield curve environment, ___.A. the shorter the maturity on a fixed income investment, the lower the par value
B. the shorter the maturity on a fixed income investment, the higher the par valueC. the shorter the maturity on a fixed income investment, the lower the yield
D. the shorter the maturity on a fixed income investment, the higher the yield16. In an inverted yield curve, ___.
A. the shorter the maturity on a fixed income investment, the lower the par valueB. the shorter the maturity on a fixed income investment, the higher the par value
C. the shorter the maturity on a fixed income investment, the lower the yieldD. the shorter the maturity on a fixed income investment, the higher the yield

17. When buying a discounted bond in the secondary market, which of the following is the correct set of yield in order of increasing value?A. coupon yield, current yield, yield to maturity
B. yield to maturity, coupon yield, current yieldC. current yield, coupon yield, yield to maturity
D. All of the three yields would have equal value.18. When buying a bond at par, which of the following is the correct set of yield in order of increasing value?

A. coupon yield, current yield, yield to maturityB. yield to maturity, coupon yield, current yield
C. current yield, coupon yield, yield to maturityD. All of the three yields would have equal value.

19.

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