Income Beginner: Buying Bonds

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1.
The face value of a bond is known as its _______.
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Par. In bond language, par means face value.
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.
New-issue bonds are bonds that are sold through the secondary market.
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False. New-issue bonds are purchased directly from the bond issuer.
4.
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.
5.
Bonds in a unit investment trust remain fixed for the life of the trust.
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True. The bonds in the trust remain fixed.