Quiz 3 of Introduction to Financial Markets

Ann is learning to invest in Bonds. She had read up a lot on the internet but she still has some queries. She knows that you had completed the ‘ Introduction to Financial Markets’ course on Coursera. She requests for your help. Please help her with the queries.

The first query she asks you is whether the face value and the par value of a bond are two different quantities?

She has some queries on the time horizon for which she can invest in Bonds. She wants to know whether the period of time in which the bond is outstanding is called term.

She is interested in long term bonds and wants to know whether the Repayment date and the Maturity date are different.

She wants you to tell her which of the following investments is the safest.

She finally decides to invest in government bonds. She wants to know in which form the government bonds are issued.

The aggregate return she will be getting on her bond investment is called

If the price of the bond is less than the Face Value then the relation between yield and coupon is

If the Yield is less than the coupon then the relation between price of the bond and Face Value is

Which of the following bonds have the best rating?

The price of a government bond is quoted as 94 16. If the face value of the bond is $1000, what is the quoted price in dollars? (Please enter only the number without $ symbol)