What are Corporate Bonds? - Definition & Examples


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question 1 of 3

Choose the BEST answer to explain the concept of risk and return.

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1. Which of the following is NOT an advantage of a bond.

2. Choose which answer is NOT a disadvantage of a bond.

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About This Quiz & Worksheet

These assessment tools will help you check your understanding of the basics of corporate bonds. For the quiz, you'll need to be able to define key terms, such as bond and interest, and to understand the relationship between risk and return.

Quiz & Worksheet Goals

Use this quiz and worksheet to assess your knowledge of the following:

  • The correlation between risk and return
  • Characteristics of bonds
  • Advantages and disadvantages of bonds
  • The definition of interest

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related lesson on corporate bonds
  • Defining key concepts - ensure that you can accurately define main phrases, such as bonds and interest
  • Information recall - access the knowledge you've gained regarding risk and return

Additional Learning

To learn more corporate bonds, review the accompanying lesson, What are Corporate Bonds? - Definition & Example. The lesson includes the following objectives:

  • Define risk
  • Identify the three main types of bonds
  • Define principal
  • Understand why you receive interest on a bond
  • Define return