Practice Test GeeksSIE - Securities Industry Essentials Practice Test
← All SIE Flashcard Decks

Debt Securities and Fixed Income Flashcards

6 cards from real SIE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Debt Securities and Fixed Income flashcards as text

  1. What does 'yield to maturity' (YTM) represent?

    Answer: The total return if the bond is held until maturity

    YTM represents the total annualized return an investor earns if the bond is held to maturity and all payments are reinvested.

  2. Which US Treasury security has a maturity of more than 10 years?

    Answer: Treasury bond

    Treasury bonds have maturities of 20 to 30 years, making them the longest-duration US government securities.

  3. A bond trading at a premium means its price is:

    Answer: Above par value

    A bond trades at a premium when its price exceeds par value, typically because its coupon rate is above current market rates.

  4. Municipal bonds are issued by:

    Answer: State and local governments

    Municipal bonds are issued by state, city, county, and other local government entities to fund public projects.

  5. What is a debenture?

    Answer: An unsecured bond backed only by the issuer's creditworthiness

    A debenture is an unsecured debt instrument backed only by the general creditworthiness and reputation of the issuer.

  6. Duration measures a bond's sensitivity to:

    Answer: Changes in interest rates

    Duration measures how much a bond's price will change in response to a 1% change in interest rates.