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Welcome to the final post in our Investor Knowledge Quiz series. If you missed any of the previous parts of the series you can find Part 1 here, Part 2 here, and Part 3 here.
Today we finish off the quiz the seventh and final questions. The final question looks at bonds and interest.
The answer is:
The return on bonds is determined by the interest rate. When the interest rate goes down the return of your bond also goes down, but the cost of the bond remains the same. You are paying for less money, so the price has effectively increased.
How well did you do on the Investor Knowledge Quiz? Did you udo better or worse than most Canadians. Look at the results from the 2020 Investor Knowledge Quiz below to see how you matchup.
Were you like nearly half of Canadians and have low knowledge or were you among the only seven percent of quiz respondents who got all seven right? If you scored low and the quiz you may want to peruse some of our investor education resources and videos to improve your knowledge and become a more informed investor.