SS (for Hannah)

Question 1

What is a bond?

Answer 1

A loan

Question 2

Who issues a bond?

Answer 2

Government

Question 3

What is the purpose of a bond?

Answer 3

To raise money

Question 4

When the country raises money from a bond they are…

Answer 4

raising capital

Question 5

Who buys the bond

Answer 5

Customers, citizens of america

Question 6

What does a bond look like?

Answer 6

A paper certificate

Question 7

What does the government do with the bond

Answer 7

They get the money and promise to pay the customer back w intrest

Question 8

Bonds come in set…

Answer 8

denominators

Question 9

What are examples of denominators?

Answer 9

$25, $50, $100, $500, $1000, $5000

Question 10

What is “Quid Pro Quo?”

Answer 10

“This for that” (agreement)

Question 11

What is the cost of a bond?

Answer 11

Half face value

Question 12

If a bond costs $50, how much will it cost after interest?

Answer 12

$100

Question 13

What is the cost of a $100 bond?

Answer 13

$50

Question 14

When does the bond equal full face value?

Answer 14

Depends on interest

Question 15

When do people often buy bonds?

Answer 15

-Gift for new baby
-during war (to give money to the gov to show patriotism)

Question 16

What is the soonest you can cash in a bond?

Answer 16

6 months

Question 17

What is the longest you can wait to cash in?

Answer 17

Up to 30 years

Question 18

Why is a bond desirable?

Answer 18

Earn interest so owner can make money

Question 19

Are they safe?

Answer 19

YES they are backed by the Gov

Question 20

What are the downfalls of bonds?

Answer 20

-Not a quick investment

Question 21

What does it mean if the bond is mature?

Answer 21

Equals the full face value