Ever wonder how large companies raise capital when the bank won't loan them any more money? One of the most accepted ways of borrowing money in the financial world is to issue bonds. There are many different types of investment bonds, but our bond quiz will teach you everything you need to know and more.
When a business needs more money than a bank loan can provide, one solution is to issue:
Long-term bonds usually have _____ interest rate than short-term bonds.
Interest payments on bonds are usually paid out:
annually or semiannually
quarterly or monthly
any of the above
When you buy stock in a company, you are actually buying:
partial ownership in a company
an investment in your future
a piece of paper
The interest rate on floating-rate bonds _____as a result of market conditions.
either of the above
When you sell a bond at lower than its face value, you are selling it at:
an auction house
The United States government has issued bonds in the past to fund:
both of the above
Treasury bonds take more than _____years to mature.
Which of the following might be funded by municipal bonds?
a shopping mall
a movie theater
What's the best way to determine if buying a corporate bond is financially risky?
Do some research on the issuing company's financial condition.
Ask a friend who works there .
Ask your lawyer.
Which of the following companies offer a rating service to help you determine a company's financial status?
Standard and Poor's
Which of the following ratings represents a low-risk bond?
_____ bonds are considered one of the riskiest types of bonds.
What is the typical life of a bond?
one month to 20 years
one month to 50 years
one month to 100 years
The right to call in a bond before its date of maturity is called:
Which provision allows a buyer to sell back a bond before its maturity date?
Which type of bond can be converted into stock in the issuing company?