Personal Finance Unit 6.2 Vocabulary

Question 1

A bond in which the assets of a corporation are used to back it

Answer 1

Mortgage Bond

Question 2

Bonds which are issued at the same time but have different maturity dates

Answer 2

Serial Bonds

Question 3

A bond that provides no interest payments

Answer 3

Zero-Coupon Bonds

Question 4

A security issued by state or local governments to pay for major projects, such as airports or schools

Answer 4

Municipal Bond

Question 5

Bonds that companies or municipalities with good financial stability issue

Answer 5

Investment Grade Bonds

Question 6

A mutual fund with only a fixed number of shares that are issued when the fund is first organized

Answer 6

Closed-End Fund

Question 7

The amount one share of a mutual fund is worth

Answer 7

Net Asset Value (NAV)

Question 8

A mutual fund with no commission fee

Answer 8

No-Load Fund

Question 9

he earning a fund pays to shareholders

Answer 9

Income Dividends

Question 10

The dollar amount a bondholder will receive at maturity

Answer 10

Face Value