Knowledge Base

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Questions

Zero-coupon bonds are issued at par and pay regular coupons until maturity.

True
False

Which index is used to adjust the principal and coupons of OAT-euro-linked bonds (OAT€i)?

French consumer price index excluding tobacco
Harmonised index of consumer prices for the euro area excluding tobacco
CAC 40 stock index
EURIBOR rate

What is the typical auction date for long-term OATs?

The first Monday of each month
The first Thursday of each month
The third Thursday of each month
The last Friday of each month

What is the main advantage of the fungibility technique for OATs on the secondary market?

It reduces the issuer's default risk
It ensures the liquidity of bond lines on the secondary market
It increases the bonds' yield
It simplifies the issuance process for companies

What characteristic distinguishes inflation-linked OATs (OATi) from other government bonds?

They have a maturity exceeding 50 years
Their principal and coupons are adjusted according to the French consumer price index excluding tobacco
They are issued only by private companies
They do not have a unit face value

Stripped bonds (STRIPS) can be traded separately on the secondary market.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Inflation-linked OATs (OATi)
Fixed-rate bonds
Zero-coupon bonds
Categories:

Sovereign bonds

Bonds classified by interest payment method

Bonds with inflation protection