Bloomberg Questions And Answers 2022

Corporate bond issuers go bankrupt more frequently than governments, as they do not have a tax base to fall back on in hard times - Answer- Why did the corporate spread significantly widen during the 2008 market crash? what does it mean when a company's corporate spread tightens? - Answer- the company's bonds are outperforming the benchmark yield what are the three main transmission mechanisms by which the yield curve affects the economy? - Answer- corporate impact, global impact, consumer impact What is the 10-year to 3-month term premium of the following yield curve? - Answer- 0.079% The purchase of which of the following products is most affected by interest rates? - Answer- apartment What is the primary driver of the left-hand end of the yield curve? - Answer- central bank interest rates Which of the graphs most clearly represents investors predicting a downturn in the economy? - Answer- A The two yield curves in the chart are from September 10, 2001 (yellow line) and from October 10, 2001 (green line). What do you think the Federal Reserve did with interest rates in the month following the attacks of September 11, 2001 - Answer- cut interest rates Look at the below yield curve inversion chart. What is most likely to happen as a result of the most recent yield curve inversion shown? - Answer- GDP will dip Why do companies do IPOs? - Answer- IPOs incentivize entrepreneurs to innovate as IPOs provide a way for entrepreneurs to monetize their work Why do companies manager-owners smile when they rind the stock exchange bell at their IPOs? - Answer- an IPO reveals the value of the manager-owner's stake The Dow Jones Industrial Average index has an unusual weighting methodology. Unlike the S&P 500, it is weighted by share price. Here are 20 of the 30 members of the Dow Jones on March 20, 2019. If all the shares went up by 5%, which share on the screen shown would have the biggest contribution to an upward movement in the index? - Answer- Goldman Sachs In 1999, James Glassman and Kevin Hassett published a book called "Dow 36,000". At the time, the Dow Jones Industrial Average Index was just under 12,000. Which of the following is a