Quiz on Fixed Income Securities

What is a bond?

• A type of insurance

• A type of equity share

• A debt instrument

• A form of currency

What does the face value of a bond represent?

• The total interest paid

• The amount to be repaid at maturity

• The issuer's profit

• The market price of the bond

What is the coupon rate?

• The tax rate on bonds

• The rate of inflation

• The interest rate paid to bondholders

• The rate of return on equity

What is the maturity date of a bond?

• The date when the bond is issued

• The date when the bond is traded

• The date when interest is paid

• The date when the principal is repaid

What was the total amount raised through privately placed corporate bonds in FY 2023-24?

• 6.55 lakh crores

• 5 lakh crores

• 10.02 lakh crores

• 7.37 lakh crores

Which of the following is a risk associated with corporate bonds?

• Guaranteed returns

• Higher liquidity than equity shares

• Preference in repayment over equity shareholders

• Interest rate risk

What is the primary market?

• Where bonds are rated

• Where bonds are auctioned

• Where bonds are offered directly by the issuer

• Where bonds are traded after issuance

What is a public issue of bonds?

• Bonds with no maturity date

• Bonds offered to the general public

• Bonds sold at a discount

• Bonds offered to a select group of investors

Which entity regulates the corporate bond market in India?

• Insurance Regulatory and Development Authority

• Ministry of Finance

• Securities and Exchange Board of India

• Reserve Bank of India

What is the role of a Debenture Trustee?

• To maintain security for bondholders

• To issue bonds

• To collect taxes

• To provide legal advice