Income Beginner:
Buying Bonds
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1.
US Treasury bonds bought over the counter have no transaction costs.
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True
False
False. Treasury bonds bought over the counter may have a small, additional flat fee.
2.
The time at which you are paid back for a bond is known as its _______.
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Value
Yield
Maturity
Maturity. A bond's maturity is the date upon which the investor's money is repaid by the issuer.
3.
The face value of a bond is known as its _______.
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Premium
Par
Coupon rate
Par. In bond language, par means face value.
4.
A bond unit investment trust is an actively managed portfolio of bonds.
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True
False
False. A unit investment trust is managed, and is a fixed portfolio of securities.
5.
New US Treasury bonds are offered only four times a year.
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True
False
True. You can only buy bonds directly from the Federal Reserve during the first half of February, May, August, and November.
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DONE