WorksheetsExit Ticket FY-7.3
Total questions: 3
Worksheet time: 2mins
Name
Class
Date
1.
Which of the following most accurately describes what a bond is?
a)
A bond is a government loan made to an individual investor that must be paid back with interest
b)
A bond is an investment in which a corporation lends an individual investor money that must be paid back with interest
c)
A bond is a government loan made to a corporation that must be paid back with interest
d)
A bond is an investment in which an investor lends money to a corporation or government and it must be paid back with interest
2.
Juan buys a bond with a fixed coupon rate of 3%. Six months later, similar bonds that are issued have a coupon rate of 4%. Which of the following is TRUE?
a)
The price of Juan’s bond will increase
b)
More investors will be willing to buy Juan’s bond
c)
The interest rate of Juan’s bond will increase to reflect the current market
d)
The price of Juan’s bond will decrease
3.
One difference between bonds and bond funds is…
a)
Buying an individual bond is generally cheaper than buying a bond fund
b)
A bond fund can help you diversify your investment portfolio
c)
Bonds pay dividends to its investors
d)
You receive the principal amount you invest in a bond fund after a certain amount of time
100 %
