Help
Course Catalog > Bonds > 100
Bonds 101: Bond Market Interest Rates

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 lower a bond's credit risk, the higher its yield.
Choose wisely. There is only one correct answer.
False. The lower a bond's credit risk, the lower its yield. Low-risk bonds generally pay less interest than those that carry higher risk.
2.
The longer a bond's maturity, the larger its discount when interest rates rise.
Choose wisely. There is only one correct answer.
True. The longer a bond's maturity, the larger its discount when interest rates rise.
3.
A continuous rise in bond prices indicates a bullish market.
Choose wisely. There is only one correct answer.
True. It is accompanied by falling interest rates.
4.
The higher a bond's duration, the lower its price risk.
Choose wisely. There is only one correct answer.
False. The higher a bond's duration, the higher its price risk.
5.
When an investor has to sell his or her bond at a discount, it usually means _______.
Choose wisely. There is only one correct answer.
Interest rates have risen. The investor must do this to attract buyers, who can get higher rates elsewhere.