All Courses > Bonds > 200
Bonds 210: Municipal Bond Insurance

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The largest issuer of municipal bond insurance is _______.
Choose wisely. There is only one correct answer.
Assured Guaranty. Assured Guaranty dominates the municipal bond insurance market at present.
2.
If a municipal bond covered by bond insurance defaults, the insurance company pays the bond's interest and principal payments to investors.
Choose wisely. There is only one correct answer.
True. That is how the insurance company fulfills its end of the bargain.
3.
Insured municipal bonds provide investors with the security that their interest and principal will be paid.
Choose wisely. There is only one correct answer.
True. This is the appeal of insured municipal bonds.
4.
Insured municipal bonds are not subject to interest rate risk.
Choose wisely. There is only one correct answer.
False. Insurance does not protect municipal bonds from interest rate risk.
5.
A CUSIP number identifies a municipal bond for tax purposes.
Choose wisely. There is only one correct answer.
False. The CUSIP number is used to identify the security when it is traded and settled.