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Can You Answer These 5: Investment Banking Questions

To keep this exciting, we are going to post five interview questions every week for Investment Banking and Sales & Trading interviews.

The basic questions that every potential hire should know are already in the technical interview question section. We will provide challenging questions once a week with the answers to be posted in the next week’s edition.

These are also questions that we know have been asked in recent interviews, so they may also be a good measuring stick to see where you are in terms of landing your dream job.

  1. Describe the convexity of a callable bond (Sales & Trading/Equity Capital Markets/Debt Capital Markets)
  2. Describe the convexity of a Mortgage Backed Security (Sales & Trading – Securitizations)
  3. Walk through how to model a pension (Investment Banking)
  4. Why is a straight flush rarer than a four of a kind? (Brain Teasers – Probability)
  5. When does the interest function become circular? What is a good fix? (Investment Banking – Modeling)

So there you are. Ask your friends, ask your mom, ask your kids and feel free to message us on your thoughts.

We have also revamped our Consumer Products & Retail section, so it is worth taking a look at if you are interested in that industry.

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Matt
ex investment banking associate
https://www.linkedin.com/in/matt-walker-ssh/

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