Podcast
Questions and Answers
How often are interest payments typically made to bondholders?
How often are interest payments typically made to bondholders?
- Annually
- Monthly
- Quarterly
- Twice a year (correct)
What do you do when you buy a bond?
What do you do when you buy a bond?
- Give the issuer a loan (correct)
- Trade the bond in the stock market
- Receive a share of the company
- Receive immediate payment
What is the purpose of issuing bonds by governments and corporations?
What is the purpose of issuing bonds by governments and corporations?
- Reduce inflation
- Raise money (correct)
- Lower interest rates
- Increase stock prices