Fixed income (bonds)

Question 1

What is a government bond (govy)

Answer 1

When someone buys a gov bond it is an investment. The government borrows your money and pays an agreed upon level of interest in return.

Question 2

How long is a short term bond

Answer 2

Less than 3 years

Question 3

How long is a medium term bond?

Answer 3

4-10 years

Question 4

How long is a long term bond

Answer 4

10 years +

Question 5

What is a municipal bond?

Answer 5

A bond issued by state or city to fund capital projects such as schools, roads etc.
Any interest earned is exempt from federal income tax.

Question 6

What are company bonds and why do they differ from stocks?

Answer 6

A company bond is a debt security to raise funds.
Unlike stocks, bond investors have no voting rights or equity in the organisation.

Question 7

What is the acronym for an Italian bond

Answer 7

BTP Italia

Question 8

What is a JCB

Answer 8

Japanese Bond

Question 9

What is the acronym for a French Government bond?

Answer 9

OAT - Obligations assembles du Tréso

Question 10

What is a Bund?

Answer 10

German bond

Question 11

What is a 2 year government bond called in Germany?

Answer 11

Schatz

Question 12

What is a Bobl?

Answer 12

A 5 year German Gov bond

Question 13

What is a long term (24-30 year) bond called in Germany?

Answer 13

A Buxl

Question 14

What is a US gov bond called?

Answer 14

A Treasury / T-note

Question 15

What is a UK gov bond called?

Answer 15

A Gilt

Question 16

What is the RPI?
And how is it relevant to UK bonds

Answer 16

Retail price index
Determines the interest and final value of a ‘index linked gilt’

Question 17

What is a yield

Answer 17

Amount of income generated by a fund’s investment in relation to the price of

Question 18

What is WAM

Answer 18

Weighted average maturity
The average time it takes for securities held in a fund to mature.