Help
Course Catalog > Bonds > 100
Bonds 103: Buying Bonds

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.
The price you pay for a new bond issue is called its _______.
Choose wisely. There is only one correct answer.
Offering price. Markups and commissions are fees you pay to dealers and brokers, respectively.
2.
The time at which you are paid back for a bond is known as its _______.
Choose wisely. There is only one correct answer.
Maturity. A bond's maturity is the date upon which the investor's money is repaid by the issuer.
3.
A discount bond _______.
Choose wisely. There is only one correct answer.
Sells below face value. When its price is below its face value, it is known as a discount bond.
4.
Buying diversified bond mutual funds has more risk than buying a few bonds individually.
Choose wisely. There is only one correct answer.
False. Because diversified bond funds contain many different kinds of bonds, they tend to have less risk than small groups of individual bonds.
5.
Most bonds are sold through _______.
Choose wisely. There is only one correct answer.
The over-the-counter market. This market includes the NASDAQ and is the principal venue for selling bonds.