Which of these is NOT part of a bond?
- CouponNo, this is an important part of a bond.
- Bondage RightsThat’s right!
- YieldNo, this is an important part of a bond.
- Maturity DateNo, this is an important part of a bond.
What happens when a bond price falls?
- The yield goes upThat’s right!
- The yield goes downNo, that’s not right.
- The yield is unaffectedNo, that’s not right.
- The yield falls, at twice the rate of the priceNo, that’s not right.
How do you make money on a bond?
- Hold it until maturity, as long as the interest rate is positive.This is only partly right.
- Sell it at a lower price, since the yield goes up as the price doesNo, that’s not right.
- Sell it at a higher price than you bought itThis is only partly right.
- Both 1. and 3.That’s right!
What happens if you buy or sell a bond in between interest payments?
- The buyer gets the full payment
- The seller gets the full payment.
- The buyer and seller split the payment.
- The bank gets the payment as a handling fee.
Which one of these bonds does not exist?
- Municipal bond
- Federal bond
- NAFTA bond
- Corporate bond
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🔥 Nice!
You are firmly on your feet and seem to be ready to enter the stock market, but you are still stumbling over some issues. Our course will help you walk lightly and confidently. But be prepared to act on your own in the future.
Lesson 4
Shares: becoming a business owner
Lesson 4
Shares: becoming a business owner
