Income Beginner: Buying Bonds

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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.
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.
3.
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.
4.
The face value of a bond is known as its _______.
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Par. In bond language, par means face value.
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.