Bonds & Fed Review

Front

Which of the following is the best definition for a bond? A fixed-income tool that is a loan from a company or government., A partial ownership of a company's assets and revenue., The amount of money it takes to invest in a company., A donation is tax deductible for a local charity.

Back

A fixed-income tool that is a loan from a company or government.

Front

A bond is considered a fixed income tool because it...

Back

will provide you a annual payment, in the form of interest.

Front

The maturity date of a bond refers to what?

Back

The day when the full value of the loan is due to the investor.

Front

What is the coupon rate?

Back

The amount in interest you will make each year until maturity.

Front

Which of the following will impact the coupon rate of a loan? Options: Only the credit rating of the company., The credit rating of a company and the maturity of the bond., The stock performance of a company or government., The maturity of the bond.

Back

The credit rating of a company and the maturity of the bond.

Front

If interest rates rise, how will that impact your bond?

Back

The price of the bond will go down due to a lack in demand.

Front

Which city is not part of the Federal Open Market Committee: Dallas, Atlanta, Seattle, Richmond?

Back

Seattle

Front

True or False: if you attempt to sell a bond, you may end up selling it for less than what you bought it for due to a decrease in coupon payments.

Back

True

Front

Which of the following is not a type of bond we discussed as an investment tool? Government Bond, Corporate Bond, Personal Bond, Municipal Bond

Back

Personal Bond

Front

Which type of bond is sold by a business, like Microsoft or Apple, to try and raise extra funds?

Back

Corporate Bond