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www.yieldcurve.pro Quizdle 2026-03-12 🟩🟩🟥🟩🟩 4/5Use Cases
2026-04-27 · 5 questions · New quiz daily
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1. On 27 April 2026, a portfolio manager observes that the 2-year US Treasury yield is 3.8%, the 10-year yield is 4.1%, and the Fed funds rate is 4.75%. The Fed has signaled no imminent rate cuts. Which regime best describes current market conditions?
2. A bond trader holds a 5-year zero-coupon bond with a face value of $1,000. The current yield-to-maturity is 4.0%. If yields rise by 50 basis points to 4.5%, which of the following most closely approximates the percentage price change?
3. A corporate bond with a 5-year maturity is trading at a spread of 180 bps over a matched-maturity US Treasury. The issuer's credit fundamentals have deteriorated, but overall risk appetite in credit markets remains stable. Which scenario would most likely result in a widening of the bond's OAS?
4. The current shape of the US Treasury yield curve shows the 10-year yield at 4.1% and the 2-year yield at 3.8%. According to the expectations hypothesis, if the market expects the 2-year rate to be 4.3% two years from now, what is the implied 2-year forward rate starting in year 2 (i.e., the f(2,4) forward rate)?
5. A bond fund manager uses a barbell strategy, holding both 2-year and 10-year US Treasuries but no intermediate bonds. The current 2-year yield is 3.8% and the 10-year yield is 4.1%. If the yield curve undergoes a parallel shift upward of 100 bps, which outcome is most likely?