Test your knowledge of bonds

To figure out whether the "How to Buy Bonds with Confidence" course is suitable for you.

Estimated time to complete: 2 minutes

Question Title

* 1. What role do bonds play in an investment portfolio? They offer:

Predictable returns

Diversification from stocks and other assets

Regular income to meet expenses

All of the above

Question Title

* 2. Interest rates and bond prices _____________________

Move in the same direction

Move in opposite direction to each other

Do not have any relation to each other

Question Title

* 3. Credit ratings are _____________________

An indication of investment merit

Opinions about credit risk

Trading calls for buying/selling bonds

None of the above

Question Title

* 4. Typically, which of the following bonds should be most sensitive to interest rate changes?

1 Year

5 Year

10 Year

30 Year

Question Title

* 5. Bond duration refers to:

The time till maturity of the bond

The time until which an investor will likely hold the bond

The time until which an investor will receive coupon payments

The sensitivity of the bond’s price with respect to changes in interest rates

Question Title

* 6. Z-Spread is a measure of _________________

Credit risk

Credit and liquidity risk

Credit, liquidity and optionality risk

Interest rate, credit, liquidity and optionality risk

Question Title

* 7. All else equal, callable bonds typically trade _____________

At a higher yield vs. a similar maturity non-callable bond

At a lower yield vs. a similar maturity non-callable bond

At the same yield vs. a similar maturity non-callable bond

None of the above

Question Title

* 8. Perpetual bonds typically fall under the category of ____________

Senior Secured

Senior Unsecured

Convertible Bonds

Subordinated Bonds

Question Title

* 9. Local currency bonds are more attractive than foreign currency bonds

Strongly agree

Agree

Disagree

It depends

Question Title

* 10. The duration of a zero coupon bond ____________

Is higher than the maturity

Is lower than the maturity

Is equal to the maturity

Depends on the specifics of the bond

Question Title

* 11. Please enter you email address to receive the results of your responses

Email Address