Question 1 of 7

A. Because the bond market typically moves in different cycles than the stock market.
B. Because bond prices typically are less volatile than stock prices.
C. Because bonds offer a regular, predictable stream of income.
D. All of the above.

Question 1 of 7

Question 2 of 7

A. They generally fall.
B. They generally rise.
C. Interest rates do not affect bond prices.

Question 2 of 7

Question 3 of 7

A. It's been certified by the Better Business Bureau.
B. It's a good credit risk -- the odds of it being able to meet its obligations are good.
C. It's a b-b-bad credit risk.

Question 3 of 7

Question 4 of 7

A. The actual yield you earn, based on what you pay for the bond, rather than the stated interest rate.
B. How long it will take to get your money.
C. A discount for senior citizens

Question 4 of 7

Question 5 of 7

A. They usually pay a better interest rate than corporate bonds of the same quality.
B. Their interest payments are generally exempt from federal income taxes.
C. No municipal bond-issuer has ever defaulted on its debt.
D. They only go to fund environmentally friendly projects.

Question 5 of 7

Question 6 of 7

A. It's treated as qualified dividends, and taxed at a maximum rate of 15%.
B. It's treated as long-term capital gains, and taxed at a maximum rate of 15%.
C. It's treated as ordinary income, and taxed at a maximum rate of 35%.
D. Interest income from corporate bonds is not taxable.

Question 6 of 7

Question 7 of 7

A. Interest rates will rise, causing bond prices to fall.
B. Inflation will lessen the value of interest payments.
C. The issuer will default on payment.
D. All of the above

Question 7 of 7

Results: 0 out of 7 Right

See Also

Test Your Investing Instincts
Why You Should Love Bonds
How Well Do You Know Mutual Funds?
Opportunity Rocks in Bonds
Test Your Gold IQ
Understanding Bonds
The ABCs of Munis