Question 1
Bonds usually pay interest
◦ annually.
◦ semiannually.
◦ quarterly.
◦ monthly.
Question 2
You should consider investing in bonds rather than stock if you
◦ are willing to take more risk.
◦ wish to receive income from your investment.
◦ are willing to tie up your investment for a long period.
◦ think interest rates will increase significantly in the near future.