Types of Bonds
Types of Markets
Bond Components
Bond Ratings
Other Assets
100
These bonds are sold by a town or city in order to fund projects like road repairs.
What is a municipal bond?
100
This type of market handles asset trades in which money is lent for more than one year.
What is a capital market?
100
This is the time at which a payment is due to a bondholder.
What is maturity?
100
A rating of D would most likely apply to this type of bond.
What is a junk bond?
100
This financial asset allows the investor to choose when it matures.
What is a Certificate of Deposit (CD)?
200
These bonds usually have a high interest rate, but are also high risk.
What is a junk bond?
200
This type of market deals with assets that are only redeemable by the original owner.
What is a primary market?
200
This is the amount that an investor pays to purchase a bond.
What is par value?
200
This firm uses all capital letters in its bond ratings.
What is Standard & Poor's?
200
This type of CD is traded in money markets.
What is a short-term CD?
300
This bond is insured with the "full faith and credit" of the United States government.
What is a treasury bond?
300
This market includes short-term CDs, Treasury bills, and money market mutual funds.
What is a money market?
300
This is the annual rate of return on a bond.
What is yield?
300
This firm would release a bond rating of Aaa or Baa.
What is Moody's?
300
This financial asset functions like a savings account, but with a higher interest rate.
What is a money market mutual fund?
400
This organization ensures that corporations that sell bonds do not commit fraud.
What is the Securities and Exchange Commission?
400
This market allows assets to be sold quickly, and provides investors with ready cash.
What is a secondary market?
400
This is another term for "interest rate".
What is coupon rate?
400
A bond rating of BBB would signify this level of risk.
What is moderate risk?
400
The large risk of money market mutual funds is that they are not ensured by this government agency.
What is the FDIC?
500
This is the only type of bond that does not send out regular interest payments.
What is a savings bond?
500
These types of markets are classified by the length of time for which funds are lent.
What are capital and money markets?
500
This is the yield on a $1,000 bond with a coupon rate of 5%.
What is $50?
500
This type of bond would usually be rated BBB or Baa because payments rely on the financial success of the issuer.
What is a corporate bond?
500
This type of assets is useful if an investor has a foreseeable expenditure.
What is a Certificate of Deposit (CD)?
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