Questions from Personal Finance


Q: What is a call feature on a bond? How will a

What is a call feature on a bond? How will a call feature affect investor interest in purchasing the bond?

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Q: What is a convertible bond? How does a bond’s convertibility feature

What is a convertible bond? How does a bond’s convertibility feature affect its return?

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Q: What is a bond’s yield to maturity? How does the price

What is a bond’s yield to maturity? How does the price paid for a bond affect its yield to maturity?

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Q: Discuss how bonds are sold on the secondary market.

Discuss how bonds are sold on the secondary market.

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Q: What are Treasury bonds? Describe their key characteristics.

What are Treasury bonds? Describe their key characteristics.

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Q: What are some factors that make estimating life insurance needs difficult?

What are some factors that make estimating life insurance needs difficult?

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Q: What are municipal bonds? Why are they issued? Are all

What are municipal bonds? Why are they issued? Are all municipal bonds free from default risk? What characteristic makes municipal bonds especially attractive to high-income investors?

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Q: What are federal agency bonds? Compare and contrast the three most

What are federal agency bonds? Compare and contrast the three most common federal agency bonds

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Q: What are corporate bonds? Are corporate bonds subject to default risk

What are corporate bonds? Are corporate bonds subject to default risk? What are junk bonds? Why would investors purchase junk bonds?

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Q: When an investor sells a bond in the secondary market before the

When an investor sells a bond in the secondary market before the bond reaches maturity, what determines the return on the bond? How do interest rate movements affect bond returns in general?

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