There are endless resources for standard coverage and M&A investment banking, but good lists of technical fixed income interview questions are hard to come by. Here's a curated list of questions and answers to help you prep for any entry-level fixed income interview across capital markets, levfin, credit investing, or corporate banking.
Question: What is modified duration?
Answer: Modified duration measures the sensitivity of a bond's price to changes in its yield-to-maturity, driven by market interest rates. It's essentially the linear relationship between prices and interest rates.