Quiz: The Ultimate How Bonds Work Quiz
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The Ultimate How Bonds Work Quiz
By: Staff
Image: refer to hsw

About This Quiz

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.

1.0 of 20
When a business needs more money than a bank loan can provide, one solution is to issue:
2.0 of 20
Long-term bonds usually have _____ interest rate than short-term bonds.
3.0 of 20
Interest payments on bonds are usually paid out:
4.0 of 20
When you buy stock in a company, you are actually buying:
5.0 of 20
The interest rate on floating-rate bonds _____as a result of market conditions.
6.0 of 20
When you sell a bond at lower than its face value, you are selling it at:
7.0 of 20
The United States government has issued bonds in the past to fund:
8.0 of 20
Treasury bonds take more than _____years to mature.
9.0 of 20
Which of the following might be funded by municipal bonds?
10.0 of 20
What's the best way to determine if buying a corporate bond is financially risky?
11.0 of 20
Which of the following companies offer a rating service to help you determine a company's financial status?
12.0 of 20
Which of the following ratings represents a low-risk bond?
C
D
13.0 of 20
_____ bonds are considered one of the riskiest types of bonds.
14.0 of 20
15.0 of 20
The right to call in a bond before its date of maturity is called:
16.0 of 20
Which provision allows a buyer to sell back a bond before its maturity date?
17.0 of 20
Which type of bond can be converted into stock in the issuing company?
18.0 of 20
Which type of bonds is backed by collateral?
19.0 of 20
Unsecured bonds are also called:
20.0 of 20
A business might issue bonds to raise money to:
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