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Bonds 210: Municipal Bond Insurance

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1.
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.
2.
Insured bonds generally have lower yields than non-insured bonds.
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True. Because of the safety feature offered by insurance, issuers can offer lower yields.
3.
The successor to the oldest municipal bond insurance company is _______.
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Ambac. The successor to the oldest municipal bond insurance company is Ambac.
4.
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.
5.
The process of assessing the risk of a bond is called _______.
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Underwriting. The process is necessary before a bond can be insured.