The Leader in CFA® Review
  1. CFA Exam: Dec. 2019 Level I
  2. Study Session 16. Fixed Income: Basic Concepts
  3. Reading 50. Fixed-Income Securities: Defining Elements

Learning Outcome Statements

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1. Basic Features of a Fixed-Income Security

a. describe basic features of a fixed-income security;
2. Bond Indenture

b. describe content of a bond indenture;

c. compare affirmative and negative covenants and identify examples of each;
3. Legal, Regulatory and Tax Considerations

d. describe how legal, regulatory, and tax considerations affect the issuance and trading of fixed-income securities;
4. Structure of a Bond's Cash Flows

e. describe how cash flows of fixed-income securities are structured;
5. Bonds with Contingency Provisions

f. describe contingency provisions affecting the timing and/or nature of cash flows of fixed-income securities and identify whether such provisions benefit the borrower or the lender.