Forex Indices Bonds Test your knowledge in bonds with 10 questions Hint: most answers can be found within the page of each asset Name Email 1. Which of the below is correct about bonds? Bonds represent ownership Bonds are debt instruments Investment grade bonds are also called junk bonds Bonds can be issued by individuals None Hint 2. Which category of bonds is the least safe? Government Corporate Municipal Quasi-government None Hint 3. What happens when interest rates rise? Yields rise and bond prices fall Yields fall and bond prices rise Yields rise and bond prices rise Yields fall and bond prices fall None Hint 4. How is a bond's price sensitivity to interest rates measured? By a sentiment indicator By a sentiment index By duration None of the above None Hint 5. What is another name of the "face value" of a bond? Par value Principal Both of the above None of the above None 6. What is the interest rate of a bond called? ROI Coupon Return on equity Interest ratio None 7. Which of the below is true for Yield to Maturity? YTM = [Coupon + (FV-PV)/M] / (FV+PV)/Coupon YTM = [Coupon + (M-PV)/M] / (M+PV)/2 YTM = [1 + (FV-PV)/M] / (FV+PV)/Coupon YTM = [Coupon + (FV-PV)/M] / (FV+PV)/2 None 8. Which yield curve predicts recessions? Normal Flat Inverted Concave None 9. Which of the below is not a muni bond? General obligation Conduit Revenue Treasury None 10. What is the best rating a bond can receive? AAA AAA1 AA+ AAAA None Great job! Submit your answers and check your email for the results. Time's up
