Sample Question #3 (finance – bond pricing)
I don’t know anything about bond pricing, but I’ve heard people use something called the discount rate when they price bonds. Can you explain what this "discount rate" is? Why is it important? Where do I get its value? What is the current discount rate (as of today)? When I price a 30-year bond, should I use today’s discount rate or should I use a different discount rate for each of the next 30 years?
(Comment: typical set of basic questions asked at a lot of quant interviews, not just those for fixed income-related positions)