Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
If a bond cannot be redeemed until its maturity date, it is considered to be callable.
Choose wisely. There is only one correct answer.
False. Bonds that can be paid back before their maturity date are callable.
2.
New-issue bonds are bonds that are sold through the secondary market.
Choose wisely. There is only one correct answer.
False. New-issue bonds are purchased directly from the bond issuer.
3.
Bonds in a unit investment trust remain fixed for the life of the trust.
Choose wisely. There is only one correct answer.
True. The bonds in the trust remain fixed.
4.
The face value of a bond is known as its _______.
Choose wisely. There is only one correct answer.
Par. In bond language, par means face value.
5.
US Treasury bonds bought over the counter have no transaction costs.
Choose wisely. There is only one correct answer.
False. Treasury bonds bought over the counter may have a small, additional flat fee.