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Bonds 103: Buying Bonds

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1.
If a bond cannot be redeemed until its maturity date, it is considered to be callable.
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False. Bonds that can be paid back before their maturity date are callable.
2.
New-issue bonds are bonds that are sold through the secondary market.
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False. New-issue bonds are purchased directly from the bond issuer.
3.
Bonds in a unit investment trust remain fixed for the life of the trust.
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True. The bonds in the trust remain fixed.
4.
The face value of a bond is known as its _______.
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Par. In bond language, par means face value.
5.
US Treasury bonds bought over the counter have no transaction costs.
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False. Treasury bonds bought over the counter may have a small, additional flat fee.