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Bonds 210: Municipal Bond Insurance

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1.
Municipal bond insurance helps to ensure _______.
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All of the above. Municipal bond insurance helps to ensure the payment of bond interest, principal, and sinking fund payments.
2.
The largest issuer of municipal bond insurance is _______.
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MBIA. The largest issuer of municipal bond insurance is MBIA.
3.
A CUSIP number identifies a municipal bond for tax purposes.
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False. The CUSIP number is used to identify the security when it is traded and settled.
4.
Insured municipal bonds are not subject to interest rate risk.
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False. Insurance does not protect municipal bonds from interest rate risk.
5.
Insured municipal bonds provide investors with the security that their interest and principal will be paid.
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True. This is the appeal of insured municipal bonds.