Bonds BFIN 2302

A bond is a certificate that promises to pay money in the future.

• true

• false

The 2 key parties in a bond agreement are:

• Investor + borrower

• Investor + government

• Investor + bond issuer

• Investor + private firm

What is the type of bond that is also known as government bonds?

• corporate

• treasury

• foreign

• presidential

The ______ is the amount that the issuer will pay on regular basis before the maturity date.

• coupon rate

• discount rate

• par value

• face value

Bonds don't have a maturity date.

• true

• false

The key characteristics of bonds are:

• Par value, Coupon Rate, Maturity, Yield

• Par value, Coupon Rate, Face value, Yield

• Par value, Coupon Rate, Maturity

• Treasury, Coupon Rate, Maturity, Yield

What are bonds used for?

• Financing

• Operating

• Multiplying

• Liquidity

What is a discount bond?

• Market rate < coupon interest rate

• Market rate = coupon interest rate

• Market rate > coupon interest rate

• Market rate - coupon interest rate

The value of a current asset at a future date based on an assumed rate of growth.

• Present value

• Current value

• Future value

• Later value

When bond prices go up..

• ..the interest rate goes up

• ..the interest rate remains the same

• ..the interest rate fluctuates

• ..the interest rate goes down