Bonds & Bonds

 Key components to how bond works:

• Issuance, purchase, maturity, Interest payment

• Issuance, purchase, Secondary market trading, Interest payment

•  Issuance, purchase, maturity, Interest payment, Secondary market trading

• Secondary market trading, Issuance, purchase, maturity, raise capital

Types of bonds that  pay no interest but are sold at a big discount on their par value:

• Zero coupon bonds

•  Investment-Grade Bonds

• Junk Bonds

• Municipal bonds

Types of bonds that are issued by companies to raise capital for various reasons

• Municipal bonds

• Government bonds

• Corporate bonds

• Zero coupon bonds

Shares represent ownership in a company

• True

• False

Share promises to pay you periodic interest until the bond's maturity

• True

• False

What is Bond price:

• How much the bond cost on the primary market

• How much the bond cost on the secondary market

• How much the bond cost on the secondary market after being issued

• How much the bond cost on the primary market after being issued

Which market has the most bond trading place?

• Secondary market

• Primary market

• Corporate bond market

• Municipal bond market

Which bond market is issued by companies with lower credit ratings?

• Sovereign Wealth Fund Bond Market

• Municipal Bond Market

• Government Bond Market

• Emerging Market Bond Market

There are 5 key components of how bond works

• True

• False

Bonds are typically used by companies and governments to raise capital for various projects and expenditures

• True

• False