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Income Beginner: Buying Bonds

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1.
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.
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.
A discount bond _______.
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Sells below face value. When its price is below its face value, it is known as a discount bond.
4.
Buying diversified bond mutual funds has more risk than buying a few bonds individually.
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False. Because diversified bond funds contain many different kinds of bonds, they tend to have less risk than small groups of individual bonds.
5.
The highest credit rating a bond can receive is _______.
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AAA. AAA is the highest credit mark a bond can receive.