Barclays Analyst Interview Questions, Process, and Tips

Q1. How prices and yields of bond work? Focusing on Fed fund rate.
Ans. 
Bond prices and yields have an inverse relationship, affected by the Fed fund rate.
• Bond prices and yields have an inverse relationship - when bond prices go up, yields go down, and vice versa.

• The Fed fund rate influences bond prices and yields - when the Fed fund rate increases, bond prices decrease and yields increase.

• Investors monitor the Fed fund rate to predict bond market movements and make investment decisions ac
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Q2. How is future rate/ forward calculated? Focusing in INR
Ans. 
Future rates/forwards are calculated based on interest rate differentials between two currencies.
• Future rates are calculated using the interest rate differentials between the two currencies involved.

• For example, if the interest rate in India (INR) is 5% and in the US (USD) is 2%, the forward rate would be calculated based on this difference.

• The formula for calculating the forward rate involves the spot rate, interest r...read more
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Q3. What will happen to emerging market currency if Donald Trump were to win election?
Ans. 
Emerging market currencies may experience volatility if Donald Trump wins election.
• Emerging market currencies could weaken due to uncertainty and potential trade conflicts under Trump's administration

• Investors may seek safe-haven assets like the US dollar, leading to further depreciation of emerging market currencies

• Countries with high exposure to US trade policies, such as Mexico and China, may see their currencies pa
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Q1. Accounting entries for Bond
Ans. 
Accounting entries for bonds involve recording the issuance, interest expense, and amortization of premium or discount.
• Record issuance of bonds at face value as a liability and cash received as an asset

• Recognize interest expense over time using effective interest rate method

• Amortize premium or discount on bonds using straight-line or effective interest rate method
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Q2. What is Credit Default Swap
Ans. 
A Credit Default Swap (CDS) is a financial derivative contract that allows an investor to hedge against the risk of default on a debt instrument.
• CDS is essentially a form of insurance against the default of a borrower or issuer of a debt security.

• The buyer of a CDS makes periodic payments to the seller in exchange for protection against default on a specified debt obligation.

• If the borrower defaults, the seller of the ...read more
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Q1. Questions on resume
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Guesstimates and general probability

3 DSA Question and 20 technical apti

Q1. What are cursors and resume based questions
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Q1. Why do you want to join the company
Ans. 
I am impressed by the company's innovative approach to solving complex problems and its strong reputation in the industry.
• I admire the company's commitment to pushing boundaries and driving innovation.

• I am excited about the opportunity to work with a talented team of professionals.

• The company's strong reputation in the industry is a testament to its success and I want to be a part of that.
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