Fixed Income — Free Practice Questions
2 free questions · 11–14% of the Level I exam · answers & explanations
These two questions are a free sample of the same original Fixed Income questions shipped in the app — exactly what a non-premium user previews. Tap an answer to check yourself and read the LOS-anchored explanation. Fixed Income carries 11–14% of the CFA® Level I exam; the full app has 110 Fixed Income practice questions plus the topic’s share of the 540-question mock bank, with cross-audited answer keys.
The principal amount that a bond's issuer agrees to repay the bondholders on the maturity date is best described as the bond's:
Why: The par value, also called the face or principal amount, is the sum the issuer contracts to return to bondholders at maturity, and it forms the basis on which coupon interest is calculated. The coupon is the periodic interest payment rather than the repaid principal, and the market price is what the bond trades for, which fluctuates with yields and usually differs from par.
A bond pays interest at a rate equal to a reference market rate plus a fixed quoted margin, with the rate resetting periodically. This bond is best classified as a:
Why: A floating-rate note carries a coupon tied to a reference rate plus a quoted margin and is reset at scheduled dates, so its interest payment moves with market rates. A step-up bond raises its coupon according to a preset schedule independent of any reference rate, and a fixed-rate bond pays the same coupon for its whole life without resetting to a market benchmark.
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The full app has 900 practice questions across all 10 CFA® Level I topics, weighted to the published outline, plus a 540-question mock bank — with LOS-anchored explanations and cross-audited answer keys.
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