Quiz: Why Bond Yields Are a Key Economic Barometer | WSJ

Test your understanding of bond yields, their relationship to the economy, and specific concepts covered in this Federal Reserve discussion

Business mixed 6 Questions Video Quiz

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Q1 Intermediate 2 pts

According to the video, what are the three key features of a bond that are set from the start? Video Reference:
"A bond is a contract with features that are set from the start. There's the maturity date... face va..."

Timestamp: 2:00

Select all correct answers

Maturity date, face value, and coupon rate Interest rate, market price, and trading volume Credit rating, yield curve, and market demand Purchase price, selling price, and annual return

Q2 Beginner 1 pts

In the example given in the video, what annual payment would an investor receive from a $1,000 bond with a 4% coupon rate? Video Reference:
"So say an investor buys a new 10-year treasury note with a face value of $1,000 and a coupon or yiel..."

Timestamp: 2:30

$40 $50 $30 $400

Q3 Beginner 1 pts

According to the video, what was the inflation rate in December (from a year earlier) that was mentioned? Video Reference:
"Last December inflation rose 7% from a year earlier. The fastest pace since 1982...."

Timestamp: 5:00

7% 4% 5% 10%

Q4 Advanced 3 pts

According to the video, what is the relationship between bond prices and yields? Video Reference:
"When the price goes down, the yield goes up and when interest rates go down, this same dynamic happe..."

Timestamp: 3:00

They have an inverse relationship - when price goes down, yield goes up They have a direct relationship - when price goes up, yield goes up They remain constant regardless of market changes They have no relationship to each other

Q5 Intermediate 2 pts

The video states that bonds that mature between which years are called notes? Video Reference:
"Bonds that mature between two and 10 years are also called notes...."

Timestamp: 2:10

2 to 10 years 10 to 30 years 1 to 5 years 5 to 15 years

Q6 Intermediate 2 pts

According to the video, what did The Fed do to interest rates in 2020 during the economic crisis? Video Reference:
"In 2020, The Fed had slashed short-term interest rates at controls to zero in an effort to bolster t..."

Timestamp: 4:10

Slashed them to zero Raised them significantly Kept them unchanged Doubled them

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Quiz: Why Bond Yields Are a Key Economic Barometer | WSJ

According to the video, what are the three key features of a bond that are set from the start? Video Reference: "A bond is a contract with features that are set from the start. There's the maturity date... face va..." Timestamp: 2:00

In the example given in the video, what annual payment would an investor receive from a $1,000 bond with a 4% coupon rate? Video Reference: "So say an investor buys a new 10-year treasury note with a face value of $1,000 and a coupon or yiel..." Timestamp: 2:30

According to the video, what was the inflation rate in December (from a year earlier) that was mentioned? Video Reference: "Last December inflation rose 7% from a year earlier. The fastest pace since 1982...." Timestamp: 5:00

According to the video, what is the relationship between bond prices and yields? Video Reference: "When the price goes down, the yield goes up and when interest rates go down, this same dynamic happe..." Timestamp: 3:00

The video states that bonds that mature between which years are called notes? Video Reference: "Bonds that mature between two and 10 years are also called notes...." Timestamp: 2:10

According to the video, what did The Fed do to interest rates in 2020 during the economic crisis? Video Reference: "In 2020, The Fed had slashed short-term interest rates at controls to zero in an effort to bolster t..." Timestamp: 4:10