Bonds bingo

Exercise and reference answers

Clues and terms

1. Clue

   Repaid at maturity.

   Item

   Par value

2. Clue

   Sets the interest paid.

   Item

   Coupon rate

3. Clue

   Discounts future cash flows.

   Item

   Yield

4. Clue

   Coupon below the yield.

   Item

   Discount

5. Clue

   Coupon above the yield.

   Item

   Premium

6. Clue

   Price up, yield down.

   Item

   Inverse

7. Clue

   No periodic interest.

   Item

   Zero coupon

8. Clue

   Issuer may redeem early.

   Item

   Callable

9. Clue

   Below investment grade.

   Item

   Junk bond

Instructions

Read each clue and tap the term it describes.

Explanation