Home > Income > Beginner
Income Beginner: 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 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.
2.
The more bonds you buy in one sale, the less you will pay in markup costs.
Choose wisely. There is only one correct answer.
True. Markups are generally lower for large sales than for small ones.
3.
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.
4.
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.
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.