Bonds and Mutual Funds Quiz

• $985

• $980.50

• $1,000

• $985.00

If a bond is trading at a premium, which of the following is true?

• The bond's yield is higher than its coupon rate.

• The bond's price is below its face value.

• The bond's price is above its face value.

• The bond's yield equals its coupon rate.

Which of the following best describes a bond discount?

• The bond is sold for more than its face value.

• The bond is sold for less than its face value.

• The bond is sold at its face value.

• The bond pays no interest.

• $19.00

• $20.00

• $21.00

• $25.00

Tags

CCSS.6.RP.A.3B

• $20.00

• $21.00

• $21.05

• $21.50

Tags

CCSS.6.RP.A.3C

Which of the following is NOT included in the calculation of a mutual fund's NAV?

• Total assets

• Total liabilities

• Number of shares outstanding

• Fund manager's salary

• $1,000

• $1,020

• $1,060

• $1,002

Tags

CCSS.6.RP.A.3D

Which of the following statements about bond yields is correct?

• Yield increases as bond price increases.

• Yield decreases as bond price increases.

• Yield is not affected by bond price.

• Yield equals the coupon rate at all times.