Bonds

Question 1

5% treasury stock 2025 is an example of which type of government bond?

Answer 1

conventional government bonds are instuments that carry a fixed coupon and a single repayment date

Question 2

which type go government bond do you expect to be the most attractive during a time of rising inflation?

Answer 2

index linked bonds as the uncertain inflation creates additional risk for the investor. the value usually rises with the rise of inflation

Question 3

what is the function of a call provision when attached to a bond.

Answer 3

It gives the issuer the option to buy back all or part of the issue before maturity

Question 4

what is the typical maturity period for a medium term note ?

Answer 4

standard corporate bonds with maturities of up to 5 yrs. though the term is also applied to instruments with maturities as long as 30 years long.