Sample Question #224 (finance – bond pricing)
Explain the difference between a bond’s yield and its rate of return. How do you calculate them?
(Comment: the funny thing about bond pricing is that, as long as you understand the concept of NPV, you should be able to derive a lot of pricing formulas without even knowing much about the bond itself — and many quant interviewers expect you to do so. In other words, it doesn’t pay to memorize what you study; you should always thoroughly understand it.)