Bond Market

Bonds are used to sell debt

• True

• False

The bond we looked at today matured in what year?

(a)  

What is the interest rate on a bond called?

• Interest Rate

• Government Rate

• Set Rate

• Coupon

The first value of the bond is called the (a)   value

There is both a primary and a secondary market for bonds

• False

• True

What does the NTMA stand for?

(a)  

There is an __________ relationship between bond prices and interest rates

• direct

• positively correlated

• inverse

• indirect

Pension funds tend to hold more bonds the closer the person gets to retirement

• True

• False

What was the coupon on the bond we looked at today?

• 4%

• 5%

• 2%

• 3%

When interest rates rise bond prices

• rise

• fall

• stay the same