Investments Mini-Quiz: Bonds

  1. All the following statements relating to bonds are correct EXCEPT:
    1. A bond is a debt instrument giving the issuer flexibility as to maturity date.
    2. A bond's par value is the amount the issuer must pay the bond owner at maturity.
    3. A bond will typically sell at a discount when its coupon rate is less than the current market rate of interest.
    4. The owner of a registered bond is the person to whom interest payments are mailed.


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