Questionnaire

Finance:

1. What is a Bond and what are the different types of bonds.

Bonds are issued by governments and corporations when they want to raise money. By
buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value
of the loan on a specific date, and to pay you periodic interest payments along the way,
usually twice a year.

fixed rate bonds

o In Fixed Rate Bonds, the interest remains fixed through out the tenure of the bond.
Owing to a constant interest rate, fixed rate bonds are resistant to changes and
fluctuations in the market.

Floating rate bonds

o Floating rate bonds have a fluctuating interest rate (coupons) as per the current
market reference rate.

Zero interest rate bonds

o Zero Interest Rate Bonds do not pay any regular interest to the investors. In such
types of bonds, issuers only pay the principal amount to the bond holders.

Inflation Link bonds

o Bonds linked to inflation are called inflation linked bonds. The interest rate of Inflation
linked bonds is generally lower than fixed rate bonds.

perpetual bonds
o Bonds with no maturity dates are called perpetual bonds. Holders of perpetual bonds
enjoy interest throughout.

Subordinated bonds:
o Bonds which are given less priority as compared to other bonds of the company in
cases of a close down are called subordinated bonds. In cases of liquidation,
subordinated bonds are given less importance as compared to senior bonds which
are paid first.

Bearer Bonds
 o Bearer Bonds do not carry the name of the bond holder and anyone who possesses
the bond certificate can claim the amount. If the bond certificate gets stolen or
misplaced by the bond holder, anyone else with the paper can claim the bond
amount.

2. What is a Time Series.

A time series is a sequence of numerical data points in successive order. In investing, a time
series tracks the movement of the chosen data points, such as a securitys price, over a
specified period of time with data points recorded at regular intervals. There is no minimum or
maximum amount of time that must be included, allowing the data to be gathered in a way that
provides the information being sought by the investor or analyst examining the activity.

3. What is an Interest Rate Swap? Explain Plain Vanilla interest rate swap.

The most common and simplest swap is a "plain vanilla" interest rate swap. In this swap,
Party A agrees to pay Party B a predetermined, fixed rate of interest on a notional principal on
specific dates for a specified period of time.

4. Explain Duration of fixed income instruments.

Duration of a fixed income instrument is a weighted average term to maturity. The time delay until
the receipt of each cash flow is weighted by the contribution of that cash flow to the total present
value of the bond.

If the interest rate goes up, what would be the impact on Bond prices?

If market interest rates rise, then the price of the bond with the 2%
coupon rate willfall more than that of the bond with the 4% coupon rate.
purchase bonds in a low-interest rate environment. A bond's maturity is the specific
date in the future at which the face value of the bond will be repaid to the investor.

5. What is the difference between Futures and Options? What would be associated liabilities if we
went Long/Short on them?

The main fundamental difference between options and futures lies in the obligations
they put on their buyers and sellers. An option gives the buyer the right, but not the
 obligation to buy (or sell) a certain asset at a specific price at any time during the life of
the contract.

6. What are various stages in Trade life cycle?

Trade, whether it is exchanging goods and services, or if it is done as a medium to exchange financial
instruments- the purpose is the same, the implication on it is same - to create something of value.

Stages involved in the trade life cycle are:

Sale
Trade Initiation and Execution
Trade Capture
Trade Validation and Enrichment
Trade Confirmation
Trade Settlement
Reconciliation

7. Difference between Transaction, Tax lot and Positions.

A tax lot is a record of an opening transaction (e.g. purchase or short sale) in your portfolio.

An instance of buying or selling something is called as a transaction.

each time you purchase a security, the new position is a distinct and separate tax lot

SQL:

1. Identifying and removing duplicates.

a. Given the Source table below, write a select query to produce the same output as the
Result table as shown below:

Solution:
SELECT
Name,COUNT(*) as DupesFound from Source table
GROUP BY Name

Source table Result from query(a)

ID Name Name DupesFound

1 Ben Ben 3
 2 Ben Ivan 2
3 Ben
4 Ivan
5 Ivan

b. Write a delete query to remove duplicates. Your query should produce the following
results:

solution:
DELETE from Source table where ID NOT IN(select Max(ID) from source table
GROUP BY Name)

Source table after running query (b)

ID Name
1 Ben
4 Ivan

2. Running total. Given the transactions table below, write a query to produce a running total as
shown in result table below:
Solution:

Select ID,Amount As Transaction Amt,

(Select SUM(Amount) from Transactions T2 WHERE T2.ID<=T1.ID) As Running Total

From Transactions T1

Go

Transactions Result
ID Amount ID Transaction Amt Running Total
1 $100 1 $100 $100
2 $-50 2 $-50 $50
3 $10 3 $10 $60

3. Join type and join algorithms. Consider the two tables (NumA and NumB) shown below.

Table: NumA Table: NumB

ID ID
 1 2
2 3
3 3
4

a. Explain the results for each of the following join types:

i. Inner Join
ii. Left Outer Join
iii. Right Outer Join
iv. Full Outer Join
b. Explain the join algorithms for each of these join types:
i. Nested Loop Join
ii. Sort Merge Join
iii. Hash Join
Solution a1: select * from NumA INNER JOIN NumB ON NumA.ID=NumB.ID;

A2: select * from NumA LEFT JOIN NumB ON NumA.ID=NumB.ID;

A3: select * from NumA RIGHT JOIN NumB ON NumA.ID=NumB.ID;

A4: select * from NumA FULL JOIN NumB ON NumA.ID=NumB.ID;

4. Please elaborate the difference between Table and Views?

A view is a virtual table. A view consists of rows and columns just like a table. The difference
between a view and a table is that views are definitions built on top of other tables (or views),
and do not hold data themselves. If data is changing in the underlying table, the same change is
reflected in the view. A view can be built on top of a single table or multiple tables. It can also be
built on top of another view. In the SQL Create View page, we will see how a view can be built.

5. Difference between WHERE clause and HAVING?

WHERE is used to filter records before any groupings take place.

HAVING is used to filter values after they have been groups. Only columns or expression in the
group can be included in the HAVING clauses conditions..

6. We have 2 tables:
Employee (Columns: EmpCode, EmpName, DeptId, Salary)
Department (Columns: DeptId, DeptName, Location)

a) Write an Oracle query to fetch department name(s) with having highest salaries greater
than $300,000.

SelectDepartment. DeptName,Employee.Salary from Employee INNER JOIN Department

on Employee.Deptid=Department.Deptid
WHERE Employee.Salary>300000
GROUP BY DeptName
ORDER BY Salary
b) Rewrite the query in part (a) for US Location departments only

SelectDepartment. DeptName,Employee.Salary from Employee INNER JOIN Department

on Employee.Deptid=Department.Deptid
WHERE Employee.Salary>300000 AND Department.Location

c) Write a query that returns name and salary of departments with total aggregated salary
(of all employees in the department) greater than 1 million.

SELECT

SUM(e.salary),d.DeptName
FROM
Department d
LEFT OUTER JOIN Employee e ON (e.DeptId = d.DeptId)
GROUP BY DeptName
HAVING SUM(e.Salary)>100000