Bond Quiz Review

Savings bonds are:

• Issued by the United States Department of the Treasury

• Considered one of the safest investments

• Earn interest for 30 years unless you cash them in early

• All of the above

T-Bills are backed by the U.S. Treasury department with a maturity of one year or less

• True

• False

T-Notes usually mature in 2 to 10 years

• True

• False

T-Bonds are short term securities

• True

• False

T-Bonds mature in between 10 and 30 years

• True

• False

T-Bonds

• Pay semi-annual interest payments until maturity

• are government bonds issued by the Treasury

• include a commitment to pay periodic interest also called coupon payments

• All of the above

Corporate bonds

• are issued by corporations to raise capital

• the company makes a legal commitment to pay interest

• mature in between 1 and 30 years

• all answers are true

When you purchase a bond, you are lending that company money to be used for a specific project

• True

• False

Price paid at the purchase of bonds

• Face Value

• Selling Price

• Cost Price

• Bond Price

The declared interest of the bond is called the ______ rate.

• bonded
• coupon
• agreed-upon
• declaration