WorksheetsShilpa Mali
Total questions: 7
Worksheet time: 4mins
Which of the following is NOT a characteristic of a bond?
Coupon Rate
Maturity Date
Stock Price
Credit Rating
A bond with a higher coupon rate will generally have a:
Higher price
Lower price
No impact on price
Depends on the maturity
What type of bond is most susceptible to interest rate risk?
Zero-coupon bond
Short-term bond
Long-term bond with a high credit rating
Convertible bond
Which of the following statements about credit risk is TRUE?
Government bonds have the highest credit risk.
Corporate bonds all have the same credit risk.
A higher credit rating indicates a lower risk of default.
Credit risk cannot be mitigated.
What is the main difference between a government bond and a corporate bond?
Government bonds have no maturity date.
Corporate bonds offer higher interest rates.
Government bonds are generally considered less risky.
Corporate bonds can be converted into stock.
If interest rates rise in the market, what is likely to happen to the price of existing bonds?
Increase
Decrease
Remain unchanged
It depends on the credit rating
Which of these types of investments has the largest amount of available securities?
Stocks
Government securities
Equities
Fixed income
