ITB - Bonds (Chapter 31.1)

Using money to participate in an enterprise that offers the possibility of profit is called...

• investing

• risk

• security

• trading

The return on investment is the amount of money the investment earns or the...

• commission

• interest

• payout

• yield

A tradeable document that shows evidence of debt or ownership is called...

• bond

• share of stock

• security

• stock option

A ____ is a certificate issued by a government or company in which it promises to pay back borrowed money at a fixed rate on a specific date.

• bond

• coupon

• option

• t-bill

The rate of interest on a bond is called the _____.

• bond rate

• coupon rate

• discount rate

• interest rate

The difference between the amount you pay for a bond and the bond's face value is...

• bond discount

• bonus

• commission

• yield

Treasury bills are sold in units of $1,000 and on the maturity date the investor receives...

• $1,000

• $1,000 plus interest

• the full face value

• the face value less commission

Treasury ______ are issued in $1,000 increments, with a maturity of 30 years.

• bills

• bonds

• notes

• stocks

A bond issued by a state government is called a ______ bond.

• local

• municipal

• regional

• state

A bond issued by a corporation is called a _______.

• corporate bond

• market share

• stock bond

• share of stock