Debt Instruments Awareness Quiz Form
Test your knowledge of debt instruments with this concise awareness quiz. All questions are required. Please answer each to the best of your ability.
Which of the following is considered a debt instrument?
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Corporate bond
Common stock
Preferred equity
Real estate
Select all features typically associated with bonds.
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Fixed interest payments
Maturity date
Voting rights
Principal repayment
How would you rate your understanding of the term 'coupon rate'?
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1
2
3
4
5
Which risk is most closely associated with holding government bonds?
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Credit risk
Interest rate risk
Liquidity risk
Operational risk
Which of the following instruments is typically unsecured?
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Debenture
Mortgage bond
Asset-backed security
Equipment trust certificate
A bond is trading at a discount if:
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Its market price is below par value
Its market price is above par value
It pays no interest
It is callable
Which of the following are types of money market instruments?
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Treasury bills
Commercial paper
Convertible bonds
Certificates of deposit
Match the debt instrument to its typical issuer.
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Rows
Corporation
Government
Municipality
Typical issuer
Corporate bond
Municipal bond
Treasury bill
Corporate bond
Municipal bond
Treasury bill
Corporate bond
Municipal bond
Treasury bill
Rate your confidence in distinguishing between secured and unsecured debt instruments.
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Not confident
1
2
3
4
Very confident
5
1 is Not confident, 5 is Very confident
Which statement best describes a callable bond?
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It can be redeemed by the issuer before maturity
It pays interest only at maturity
It is only available to institutional investors
It is exempt from all taxes
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