What are Government Bonds and How to Trade Them?

Government bonds are commonly known as one of the least risky investments available.

• Question 01

  What is the maturity of Treasury bills?

  Your Answer

  • A.Less than a year

  • B.1 to 10 years

  • C.10+ years

  • D.Over 30 years

• Question 01

  What does the term "principal" refer to in bond terminology?

  Your Answer

  • A.Fixed interest payments

  • B.Face value of the bond

  • C.Interest rate

  • D.Bond price

• Question 01

  What is the primary characteristic of a bond's maturity?

  Your Answer

  • A.Duration of the bond

  • B.Frequency of coupon payments

  • C.Time until the bond expires

  • D.Total interest earned

• Question 01

  What is the primary risk associated with government bonds?

  Your Answer

  • A.Credit risk

  • B.Market risk

  • C.Currency risk

  • D.Inflation risk

• Question 01

  What is the primary concern associated with high inflation for bondholders?

  Your Answer

  • A.Decreased purchasing power of coupon payments

  • B.Increased bond prices

  • C.Decreased interest rates

  • D.Increased credit risk

• Question 01

  What are government bonds linked to inflation called in the US?

  Your Answer

  • A.TIPS

  • B.Gilts

  • C.Bunds

  • D.Index-linked gilts

• Question 01

  What are government bonds called in the UK?

  Your Answer

  • A.Treasuries

  • B.Gilts

  • C.Bunds

  • D.Bills

• Question 01

  What are coupon dates?

  Your Answer

  • A.Dates when investors can redeem their bonds

  • B.Dates when coupon payments are made

  • C.Dates when bonds reach maturity

  • D.Dates when bonds are initially issued