A K Capital Services Summer Intern Interview Questions and Answers

The topics allotted for the group discussion were general enough to ensure that all contestants had the opportunity to present their thoughts.

Q1. What is the relevance of Discounted Cash Flow (DCF) Modeling in the fixed income product industry?
Ans. 
DCF modeling is essential in fixed income product industry for valuing bonds and other securities based on their future cash flows.
• DCF modeling helps in determining the present value of future cash flows from fixed income securities.

• It takes into account factors like interest rates, bond maturity, and credit risk to calculate the fair value of bonds.

• DCF modeling is crucial for pricing bonds, assessing risk, and making ...read more
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Q2. What is the typical spread between government securities and corporate bonds?
Ans. 
The spread between government securities and corporate bonds typically varies based on factors such as credit risk, maturity, and market conditions.
• The spread between government securities and corporate bonds is influenced by the credit risk associated with the corporate bond issuer. Higher credit risk typically leads to a wider spread.

• Maturity also plays a role in determining the spread, with longer-term bonds general...read more
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