Exam 13: Investing in Bonds and Other Alternatives

Herman Melville never thought of a bond as being a ________ and that he would be a ________ when securing one until he read about it in his personal finance text.

The interest rate carried on agency bonds,such as FNMA and FHLB,is ________ the interest rate on Treasury bonds.

Describe the features and characteristics of preferred stock as discussed in your textbook.

It is a fact that there is a(n)________ relationship between interest rates and bond values in the secondary market.When interest rates ________,bond prices ________,and when interest rates ________,bond prices ________.

Which of the following bonds would be appropriate for a retired person seeking a stream of income during retirement?

Bonds that do not pay interest are known as no-load bonds.

Your friend wants you to seriously consider investing in bonds like she did.Why?

Why are the tax implications of investing in bonds more involved than the tax implications of investing in common stock?

XYZ company issued bonds three years ago with a 7% coupon rate.Today,the market rate of interest was lowered to 4%.What most likely will happen next?

There is an inverse relationship between interest rates and bond values.

Make a list and check it twice to tell how to select a good bond.

Michael Milkman has suggested that you consider the purchase of some bonds that are rated BB or below.He is asking you to purchase ________ bonds.

An I bond is an accrual-type bond,meaning that interest is added to the value of the bond and paid when the bond is cashed in.

According to the Morgan Stanley REIT Index,REITs fell by about 15 percent between March 2007 and March 2009.

Sherman has three bonds with a $1,000 par value that pay a 9% coupon interest rate.How much will he earn every six months?

There are dangers present in bond investing.Tell everyone what they all are.

When you are holding preferred stock that you can exchange for a predetermined number of shares of common stock,you are holding ________ stock.

State or municipal bonds that have interest and par value paid for with funds from a designated project or specific tax are known as ________ bonds.

What is the best strategy recommended in your textbook for collectibles?

According to your textbook,when you are investing in gold,silver,gems,and collectibles you are actually