Bond Basics Quiz
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Questions and Answers

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?

  • 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?

  • Reduce inflation
  • Raise money (correct)
  • Lower interest rates
  • Increase stock prices
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