Understanding Bonds

What is a bond?

• A bond is a loan

• A bond is a type of stock

• A bond is a form of currency

• A bond is a savings account

What does a bond represent to the issuing company or government?

• An asset

• A debt

• A profit

• A liability

What does a bond represent to the bondholder?

• An asset

• A liability

• A debt

• A risk

What is a bond in the context of investing?

• A type of stock that pays dividends

• A loan given by an investor with a promise of repayment and interest

• A savings account with a fixed interest rate

• A type of insurance policy

What is a key difference between bonds and most loans?

• Bonds are not tradeable

• Bonds are tradeable, unlike most loans

• Bonds do not pay interest

• Bonds require collateral

What is the coupon rate of the Treasury bond mentioned?

• 2.5%

• 1.875%

• 3.0%

• 1.5%

In the context of bonds, what does the term "stock" refer to?

• The interest rate

• The borrower and the bond type

• The maturity date

• The market value

What is the redemption date of the bond?

• 2030

• 2041

• 2025

• 2050

How much is the nominal value of the bond?

• US$5,000

• US$10,000

• US$15,000

• US$20,000

What is the value of the bond as mentioned in the document?

• US$9,000

• US$9,618

• US$10,000

• US$8,500