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Bonds 103: Buying Bonds

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1.
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.
2.
The time at which you are paid back for a bond is known as its _______.
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Maturity. A bond's maturity is the date upon which the investor's money is repaid by the issuer.
3.
New US Treasury bonds are offered only four times a year.
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True. You can only buy bonds directly from the Federal Reserve during the first half of February, May, August, and November.
4.
The more bonds you buy in one sale, the less you will pay in markup costs.
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True. Markups are generally lower for large sales than for small ones.
5.
The coupon rate is the amount of interest paid on a bond's premium.
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False. The coupon rate is the amount of interest paid on a bond's par.