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Chapter 2 of 10
Introduction to the Underlying Markets
24 marks (16%)~8 hours study12 sections · 12 practice questions
Learning objectives
- Describe the structure and operation of equity, currency, and fixed-income markets.
- Explain how indices are constructed and rebalanced.
- Define yield, duration, PVBP, convexity for fixed-income securities.
- Read a yield curve and interpret its shape (normal, flat, inverted).
- Articulate how risk and return are measured in each underlying market.
Topics covered
01Equity markets and equity indices
02Currency markets — INR vs other currencies
03Fixed-income securities — government and corporate bonds
04Interest rate concepts and yield curves
05Return and risk measures for debt — current yield, YTM, duration, PVBP, convexity
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A peek at what's inside Chapter 2:
12
study sections
First section: "Why this chapter matters"
21
cheat-sheet terms
Includes: Primary market, Secondary market, T+1 settlement...
12
practice MCQs
Interactive — click an option to reveal the correct answer + explanation
3 underlying tabs
Equity / Currency / Interest Rate views
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