Podcast
Questions and Answers
What is the main purpose of issuing bonds in the bond market?
What is the main purpose of issuing bonds in the bond market?
- To raise capital for various purposes (correct)
- To reduce interest rates
- To finance budget surpluses
- To increase the money supply
What is the primary difference between the money market and the bond market?
What is the primary difference between the money market and the bond market?
- The interest rates offered
- The type of debt instruments traded
- The maturity period of debt securities (correct)
- The credit rating of issuers
What is the term for the periodic interest payments made to bondholders?
What is the term for the periodic interest payments made to bondholders?
- Coupons (correct)
- Dividends
- Yield
- Interest rate
What is the role of the bondholder in a bond transaction?
What is the role of the bondholder in a bond transaction?
What is the term for the initial amount collected by the issuer when issuing a bond?
What is the term for the initial amount collected by the issuer when issuing a bond?
What is the term for the entity that issues a bond?
What is the term for the entity that issues a bond?
Which type of investor is likely to invest in bonds to hedge against interest rate risk?
Which type of investor is likely to invest in bonds to hedge against interest rate risk?
What is the primary reason for central banks to invest in government bonds?
What is the primary reason for central banks to invest in government bonds?
Which of the following is a characteristic of bonds issued by high-quality corporate issuers?
Which of the following is a characteristic of bonds issued by high-quality corporate issuers?
What is the likely effect on the price of a bond when interest rates rise?
What is the likely effect on the price of a bond when interest rates rise?
What is the primary benefit of bond investments for retirees or those seeking regular cash flow?
What is the primary benefit of bond investments for retirees or those seeking regular cash flow?
Which of the following types of bonds is most sensitive to changes in interest rates?
Which of the following types of bonds is most sensitive to changes in interest rates?
Which type of investor is likely to invest in bonds for regulatory compliance purposes?
Which type of investor is likely to invest in bonds for regulatory compliance purposes?
What is the primary risk associated with bonds issued by companies with lower credit ratings?
What is the primary risk associated with bonds issued by companies with lower credit ratings?
What is the primary reason for individual investors to invest in bond mutual funds or ETFs?
What is the primary reason for individual investors to invest in bond mutual funds or ETFs?
What is the likely effect on the real return of a bond when inflation rises?
What is the likely effect on the real return of a bond when inflation rises?
Why may an investor in a bond issued by a smaller company face liquidity risk?
Why may an investor in a bond issued by a smaller company face liquidity risk?
What is the benefit of a bond's price increasing due to a decline in interest rates or an improvement in the credit quality of the issuer?
What is the benefit of a bond's price increasing due to a decline in interest rates or an improvement in the credit quality of the issuer?
