Municipal Bonds
Corporate Bonds
Bond Scenarios
Bond Facts
Random Bonds
100
Municipal bonds are issued by
What are state and local governments
100
This type of corporate bond has the option to convert to common stock.
What are convertible bonds
100
Due to this perk, a municipal bond with a 5% rate of interest can earn a higher net interest than a corporate bond earning 6%
What is tax exemption
100
This is where you would go to buy a federal bond if you didn't want to pay broker fees
What is Federal Reserve, or treasurydirect.gov
100
A Method to finance municipal or corporate activities
What are bonds
200
This type of bond is generally repaid using funds generated from the project the bond was issued to complete
What is a revenue bond
200
This type of bond is backed by specific assets
What are secured bonds
200
This is what Moody's would call a bond with a rating of Caa2
What is a junk bond
200
Of the places you can buy bonds, this one typically has the highest commission
What are full service brokers
200
Bonds first began in ancient Mesopotamia in this year
What is 2400 BCE
300
This type of bond is backed by the municipality's ability to levy taxes
What is a General Obligation bond (GO bonds)
300
This type of corporate bonds can be recalled before the maturity date
What are Callable Bonds
300
To be this, you must have a rating of Baa or higher or BBB or higher
What is investment grade
300
Many people invest in these to hedge their bond risk
What is bond pools/bond funds
300
Initially bonds were used to fund this endeavour
What is territorial expansion
400
The effective return rate is higher than the state rate because Municipal bonds have this perk
What is tax exemption on interest
400
This is how often a corporate bond holder can expect to receive a payment
What is semiannually
400
This is considered the worst an investor can expect without a company defaulting on its bond obligation
What is Yield to Worst (YTM)
400
Unlike stocks which are equity, a bond is this.
What are loans, or debt
400
This country defaulted on its bond obligation in 1998
What is Russia
500
These type of Municipal Bonds are nearly risk free and offer a slightly higher yield than other federal securities
What are Agency Bonds
500
This type of bond is based on the general creditworthiness of the company
What are debentures
500
This is the Premium percentage for a bond with the market rate of $10,400 and has a face value of $10,000
What is 4% or 104
500
The highest rating a bond can receive is AAA which is in contrast to this, the lowest rating a bond can receive
What is D or default
500
This is when you sell a bond for more than its face value
What is selling at a premium
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