Question

QUESTION 1

1. MATCH THE NAME OF THE BOND WITH DESCRIPTION:

   CONSOLE=? DEBENTURE=? TERM BOND=? TAX FREE BOND =? EQUIPMENT TRUST CERTIFICATE=? SERIAL BONDS=? YIELD TO MATURITY (YTM)=? CALLABLE BOND=? EURO BOND=? FOREIGN BOND=?

   a. This is a type of bond that has very long maturity (100-200 yrs) or it never matures. b. This is a type of bond that has no collateral - it is issued on the financial strength of the issuer. c. This is a type of bond that matures in 11-30 years’ time. d. This is a BOND, Issued BY one of the 50 STATES OF THE USA, Semi-Annual Interest Pmts to the Buyer of this Bond.   Living in the Issuing State, is Federal Income Taxes. e. This is a bond that uses the purchased item itself as collateral f. These Bonds, Issued on the Same Date, Mature on different Dates. g. This is the % Yield that a Bondholder earns, if holds the Bond till its Maturity. h. This is a type of bond that the issuer of the bond can call it back before its date of its maturity i. It is a bond issued by a domestic entity in a foreign country in the currency of the foreign country. j. A Foreign Country Issuing a Bond in the Domestic Market in the Currency of the Domestic Country.

Answer 1

1. Console Bond = This is a type of bond that has very long maturity (100-200 yrs) or it never matures

2. Debenture = This is a type of bond that has no collateral - it is issued on the financial strength of the issuer

3. Term Bond = These Bonds, Issued on the Same Date, Mature on different Dates

4. YIELD TO MATURITY (YTM) = This is the % Yield that a Bondholder earns, if holds the Bond till its Maturity

5. CALLABLE BOND = This is a type of bond that the issuer of the bond can call it back before its date of its maturity

6. Foreign Bond = A Foreign Country Issuing a Bond in the Domestic Market in the Currency of the Domestic Country

7. Euro Bond = It is a bond issued by a domestic entity in a foreign country in the currency of the foreign country

8. Serial Bond = This is a type of bond that matures in 11-30 years’ time

9. Equipment Trust Certificate = This is a bond that uses the purchased item itself as collateral

10. Tax Free Bond = This is a BOND, Issued BY one of the 50 STATES OF THE USA, Semi-Annual Interest Pmts to the Buyer of this Bond. Living in the Issuing State, is Federal Income Taxes