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1.
Most bonds are sold through _______.
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The over-the-counter market. This market includes the NASDAQ and is the principal venue for selling bonds.
2.
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.
3.
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.
4.
A bond unit investment trust is an actively managed portfolio of bonds.
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False. A unit investment trust is managed, and is a fixed portfolio of securities.
5.
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.