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L319: Basics of Bonds

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

Who can issue a bond?

a)

Government

b)

Corporates

c)

Municipal Corporations

d)

All of the above

2.

Which among the following is a fixed income instrument?

a)

Mutual Fund

b)

Equity Shares

c)

Bonds

d)

All of the above

3.

ABC Inc. wants funds from public by way of bonds.

ABC Inc. will be called __________________ .

a)

Bond Holder

b)

Bond Issuer

c)

Lender

d)

All of the above

4.

Person who subscribes to a bond as an investor is called ______________ .

a)

Bond Holder

b)

Bond Issuer

c)

Borrower

d)

All of the above

5.

Face value of the bond means _____________ .

a)

Current Market Price

b)

Issue price of the bond

c)

Amount receivable at maturity

d)

Amount of interest every year

6.

Coupon rate of the bond means

a)

interest rate on face value

b)

redemption rate

c)

rate of discount

d)

none of the above

7.

A bond issue by a state government comes under the category of _______________ .

a)

Corporate Bonds

b)

Government Bonds

c)

Callable Bonds

d)

Puttable Bonds

8.

At the time of maturity, what is paid back to the bond holder?

a)

Market Price

b)

Face Value

c)

Issue Price

d)

Any of the above