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 coupon rate is the amount of interest paid on a bond's premium.
Choose wisely. There is only one correct answer.
False. The coupon rate is the amount of interest paid on a bond's par.
2.
A bond unit investment trust is an actively managed portfolio of bonds.
Choose wisely. There is only one correct answer.
False. A unit investment trust is managed, and is a fixed portfolio of securities.
3.
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.
4.
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.
5.
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.