Which of the following is the shape of an inverted yield curve or term structure?
All rates negatives
The dirty or full price of a bond:
is usually less than the clean price
applies if an issuer has defaulted
equals the present value of all cash flows, plus accrued interest.
is paid when a security trades ex-coupon.
A SPAC is
A bond for special purposes
A derivative for hedging currency risk
A vehicle that is listed on the markets without any business activity
A vehicle that is listed on the markets with a specific business activity
Which of the following characteristics does not correspond to private equity shares?
Not listed on public exchanges
Share price determined by the market
Long holding period
Focus on long term value creation
Which of the following situations lead to short-term profit opportunities in the bond market?
yields of all maturities start to rise
yields of all maturities start to remain stable
Interest rates become more volatile.
inflation is expected to rise
The primary function of a Central Bank is:
to control the nation’s gold supply
to control the nation’s money supply
to control the nation’s oil supply
to control the nation’s money demand
Which of the following is not a function of a Central Bank?
promote the smooth operation of payments operations
conduct foreign exchange
define and implement the monetary policy
take speculative positions in the capital markets
I foresee a 20 bp decrease in the YTM of a bond quoted at 2%, with sensitivity 5. On a nominal value of 100 million riyals and if this YTM drop really took place, the benefit of the operation would be:
If I want to borrow money with a repo, I must:
Buy a bond in spot and sell it forward
Buy a bond in spot and buy it forward
Sell a bond in spot and sell it forward
Sell a bond in spot and buy it forward
The biggest market is
The bond market in US
The equity market in China
The bond market in China
The equity market in Europe
Keeping debt constant, a decrease of the total capital:
is always bad for the company
increases the leverage ratio
does not not affect the leverage ratio
decreases the leverage ratio
The per annum discount rate of a 180-day T-bill with a cash price of 98 is closest to:
Cost of Equity is generally
lower than cost of debt
equal to cost of debt
higher than cost of debt
In general we can refer to how many main internal sources of financing in a company:
If the 6 month interest rate is 1% and the 12 month interest rate is 2%, the forward rate 6 months-12 months is (assume simple interest rate):
If a currency is traded forward with depreciation, it is because:
there is buying interest in it.
its interest rate is lower than the interest rate of the other currency
its interest rate is equal to the interest rate of the other currency
its interest rate is higher than the interest rate of the other currency
A public share offering, launched on the market with the aim of selling a significant stake in a company is a: