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Bond Types

Total questions: 6

Worksheet time: 3mins

Name
Class
Date
1.

The local government wants to build a bridge to connect two parts of a growing city. Which type of bond would a local government issue?

a)

Corporate

b)

Municipal

c)

Agency

d)

U.S. Treasury

2.

A home mortgage company backed by the government wants to raise money for more first time home mortgage loans. Which type of bond would the government sponsored agency issue?

a)

Corporate

b)

Municipal

c)

Agency

d)

U.S. Treasury

3.

An investor wants to make the safest possible bond investment and plan to collect the interest for ten years. Which type of bond should the investor purchase?

a)

Corporate

b)

Municipal

c)

Agency

d)

U.S. Treasury

4.

A large corporation wants to expand into Asian markets. They want to issue a bond and plan to guarantee the bond with land holdings in Latin America so What type of bond would they issue?

a)

Corporate

b)

Municipal

c)

Agency

d)

U.S. Treasury

5.

A major corporation wants to issue a bond, they have a reputation for being a trustworthy company. They want to use their credit rating to guarantee the bond. What type of bond would they issue?

a)

Corporate

b)

Municipal

c)

Agency

d)

U.S. Treasury

6.

An investor wants to support the increase of water power in America and would like to purchase a bond from the Tennessee Valley Authority. What type of bond would he purchase?

a)

Corporate

b)

Municipal

c)

Agency

d)

U.S. Treasury