Question 1

Dave Harris purchased a single bond last year for $987.He knows he will receive $1,000 on March 1,2026.This date is referred to as the ____ date.

Accepted Answer

A) maturity 
B) purchase 
C) record 
D) ex-dividend 
E) declaration 
A) maturity 
B) purchase 
C) record 
D) ex-dividend 
E) declaration

Question 2

Which one of the following represents a bond that generally lacks characteristics of a safe investment and is subject to high credit risk?

Accepted Answer

A) Treasury bond 
B) Bond rated B by Standard and Poor's 
C) Bond rated AAA by Standard and Poor's 
D) Insured municipal bond 
E) Treasury bill 
A) Treasury bond 
B) Bond rated B by Standard and Poor's 
C) Bond rated AAA by Standard and Poor's 
D) Insured municipal bond 
E) Treasury bill

Question 3

For 2015,bond yields for high-quality corporate bonds have been approximately how much?

Accepted Answer

A) 2% 
B) 4% 
C) 6% 
D) 8% 
E) 10% 
A) 2% 
B) 4% 
C) 6% 
D) 8% 
E) 10%

Question 4

A bond that is repaid from the income generated by the project it is designed to finance is called a:

Accepted Answer

A) Treasury bill. 
B) savings bond. 
C) revenue bond. 
D) general obligation bond. 
E) agency bond. 
A) Treasury bill. 
B) savings bond. 
C) revenue bond. 
D) general obligation bond. 
E) agency bond.

Question 5

With a _____,only the registered owner can collect the principal at maturity,but interest payments can be paid to anyone who presents one of the detachable coupons.

Accepted Answer

A) registered coupon bond 
B) bearer bond 
C) corporate bond 
D) money market account 
E) savings bond 
A) registered coupon bond 
B) bearer bond 
C) corporate bond 
D) money market account 
E) savings bond

Question 6

Doug Emery purchased a bond that can be exchanged for a set number of shares of the issuer's common stock.What type of bond has Doug purchased?

Accepted Answer

A) Debenture 
B) Subordinated debenture 
C) Convertible 
D) Callable 
E) High-yield 
A) Debenture 
B) Subordinated debenture 
C) Convertible 
D) Callable 
E) High-yield

Question 7

If a bond is purchased at a price below the face value,the yield to maturity is:

Accepted Answer

A) greater than the stated interest rate. 
B) the same as the stated interest rate. 
C) less than the stated interest rate. 
D) zero. 
E) of no significance. 
A) greater than the stated interest rate. 
B) the same as the stated interest rate. 
C) less than the stated interest rate. 
D) zero. 
E) of no significance.

Question 8

Treasury bonds are issued in $5,000 units with 10-year maturities.

Accepted Answer

A) True 
 B)False

Question 9

A registered bond is a bond whose ownership is listed in the owner's name by the issuing company.

Accepted Answer

A) True 
 B)False

Question 10

A sinking fund is a fund to which deposits are made each year for the purpose of redeeming a bond issue.

Accepted Answer

A) True 
 B)False

Question 11

Insured municipal bonds offer slightly lower interest rates than uninsured bonds because of the reduced risk of default.

Accepted Answer

A) True 
 B)False

Question 12

The bond debenture is a legal document that details all of the conditions relating to a bond issue.

Accepted Answer

A) True 
 B)False

Question 13

Maturity dates for corporate bonds generally range from 5 to 10 years.

Accepted Answer

A) True 
 B)False

Question 14

A convertible bond is a bond that can be exchanged,at the owner's option,for a specified number of shares of the corporation's common stock.

Accepted Answer

A) True 
 B)False

Question 15

A corporate bond rated B by Moody's would be suitable for:

Accepted Answer

A) every investor. 
B) very cautious investors. 
C) speculators. 
D) no one because the bond issue is in default. 
E) investors who are highly dependent upon the interest income. 
A) every investor. 
B) very cautious investors. 
C) speculators. 
D) no one because the bond issue is in default. 
E) investors who are highly dependent upon the interest income.

Question 16

Dave Johnson's objective was to purchase a government bond that provided some protection against inflation as measured by the consumer price index.To fulfill this objective,John purchased a:

Accepted Answer

A) T-bill. 
B) T-note. 
C) T-bond. 
D) TIPS. 
E) general obligation bond. 
A) T-bill. 
B) T-note. 
C) T-bond. 
D) TIPS. 
E) general obligation bond.

Question 17

The quality rating given by Standard & Poor's to highly speculative bonds is:

Accepted Answer

A) high-grade. 
B) problematic or default. 
C) investment-grade. 
D) medium-grade. 
E) unrated. 
A) high-grade. 
B) problematic or default. 
C) investment-grade. 
D) medium-grade. 
E) unrated.

Question 18

Since 1990,bond yields for high-quality corporate bonds have increased significantly.

Accepted Answer

A) True 
 B)False

Question 19

Although there is a great deal of information on the internet about stock investments,it is impossible to evaluate bonds using the internet.

Accepted Answer

A) True 
 B)False

Question 20

According to Moody's,bonds with extremely poor prospects for recovery of principal or interest are rated:

Accepted Answer

A) A-. 
B) B-. 
C) C. 
D) E. 
E) F. 
A) A-. 
B) B-. 
C) C. 
D) E. 
E) F.

Dave Harris purchased a single bond last year for $987.He knows he will receive $1,000 on March 1,2026.This date is referred to as the ____ date.

Which one of the following represents a bond that generally lacks characteristics of a safe investment and is subject to high credit risk?

For 2015,bond yields for high-quality corporate bonds have been approximately how much?

A bond that is repaid from the income generated by the project it is designed to finance is called a:

With a _____,only the registered owner can collect the principal at maturity,but interest payments can be paid to anyone who presents one of the detachable coupons.

Doug Emery purchased a bond that can be exchanged for a set number of shares of the issuer's common stock.What type of bond has Doug purchased?

If a bond is purchased at a price below the face value,the yield to maturity is:

Treasury bonds are issued in $5,000 units with 10-year maturities.

A registered bond is a bond whose ownership is listed in the owner's name by the issuing company.

A sinking fund is a fund to which deposits are made each year for the purpose of redeeming a bond issue.

Insured municipal bonds offer slightly lower interest rates than uninsured bonds because of the reduced risk of default.

The bond debenture is a legal document that details all of the conditions relating to a bond issue.

Maturity dates for corporate bonds generally range from 5 to 10 years.

A convertible bond is a bond that can be exchanged,at the owner's option,for a specified number of shares of the corporation's common stock.

A corporate bond rated B by Moody's would be suitable for:

Dave Johnson's objective was to purchase a government bond that provided some protection against inflation as measured by the consumer price index.To fulfill this objective,John purchased a:

The quality rating given by Standard & Poor's to highly speculative bonds is:

Since 1990,bond yields for high-quality corporate bonds have increased significantly.

Although there is a great deal of information on the internet about stock investments,it is impossible to evaluate bonds using the internet.

According to Moody's,bonds with extremely poor prospects for recovery of principal or interest are rated:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

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Exam 15: Investing in Bonds

Dave Harris purchased a single bond last year for $987.He knows he will receive $1,000 on March 1,2026.This date is referred to as the ____ date.

Which one of the following represents a bond that generally lacks characteristics of a safe investment and is subject to high credit risk?

For 2015,bond yields for high-quality corporate bonds have been approximately how much?

A bond that is repaid from the income generated by the project it is designed to finance is called a:

With a _____,only the registered owner can collect the principal at maturity,but interest payments can be paid to anyone who presents one of the detachable coupons.

Doug Emery purchased a bond that can be exchanged for a set number of shares of the issuer's common stock.What type of bond has Doug purchased?

If a bond is purchased at a price below the face value,the yield to maturity is:

Treasury bonds are issued in $5,000 units with 10-year maturities.

A registered bond is a bond whose ownership is listed in the owner's name by the issuing company.

A sinking fund is a fund to which deposits are made each year for the purpose of redeeming a bond issue.

Insured municipal bonds offer slightly lower interest rates than uninsured bonds because of the reduced risk of default.

The bond debenture is a legal document that details all of the conditions relating to a bond issue.

Maturity dates for corporate bonds generally range from 5 to 10 years.

A convertible bond is a bond that can be exchanged,at the owner's option,for a specified number of shares of the corporation's common stock.

A corporate bond rated B by Moody's would be suitable for:

Dave Johnson's objective was to purchase a government bond that provided some protection against inflation as measured by the consumer price index.To fulfill this objective,John purchased a:

The quality rating given by Standard & Poor's to highly speculative bonds is:

Since 1990,bond yields for high-quality corporate bonds have increased significantly.

Although there is a great deal of information on the internet about stock investments,it is impossible to evaluate bonds using the internet.

According to Moody's,bonds with extremely poor prospects for recovery of principal or interest are rated:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters