Bonds / NPV Hedge Fund Trader Interview Questions:

Submitted by: Muhammad
☛ If you are paid a dollar a year for the rest of your life, how much is that worth today?
☛ How much is a dollar in 20 years worth today?
☛ What is the relationship between the yield and the price of the bond?
☛ How does the future value of money relates to the present value (i.e. FV=PV(1+r)^t)?
☛ What major factors affect the yield on a corporate bond?
☛ What is the Black-Scholes model?
☛ How does the yield curve look like?
☛ You have a 10% note maturing in five years trading at 70. What is the current yield?
☛ Define the difference between the "yield" and the "rate of return" on a bond.

Submitted by: Muhammad

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