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Income Beginner: Buying Bonds

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1.
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.
2.
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.
3.
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.
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.
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.