Practice Set - 2 | Practice Set | NISM Series XXI-B: Portfolio Managers Certification Examination

Question 1

A steep yield curve suggests:

Question 2

A bond is trading at a premium. Which of the following is most likely true?

Question 3

A bond trading at par implies:

Question 4

Which bond has the highest duration?

Question 5

Which investor benefits most from falling interest rates?

Question 6

When inflation rises unexpectedly, which bond suffers the most?

Question 7

Real return on a bond is affected by:

Question 8

Which of the following reduces interest rate risk?

Question 9

Which of the following is true for floating rate bonds?

Question 10

If yield curve inverts, it indicates:

Question 11

Credit spread refers to:

Question 12

Which type of bond is most sensitive to interest rate changes?

Question 13

A flat yield curve indicates:

Question 14

If a bond's yield to maturity increases, its price will:

Question 15

A bond with lower credit rating generally offers:

Question 16

Which scenario results in capital loss for bondholders?

Question 17

Which of the following bonds is least affected by reinvestment risk?

Question 18

Which risk increases when interest rates fall for callable bonds?

Question 19

Which bond is most exposed to default risk?

Question 20

Practice Set - 2