Income Beginner: Buying Bonds

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1.
The highest credit rating a bond can receive is _______.
Choose wisely. There is only one correct answer.
AAA. AAA is the highest credit mark a bond can receive.
2.
The more bonds you buy in one sale, the less you will pay in markup costs.
Choose wisely. There is only one correct answer.
True. Markups are generally lower for large sales than for small ones.
3.
The face value of a bond is known as its _______.
Choose wisely. There is only one correct answer.
Par. In bond language, par means face value.
4.
New US Treasury bonds are offered only four times a year.
Choose wisely. There is only one correct answer.
True. You can only buy bonds directly from the Federal Reserve during the first half of February, May, August, and November.
5.
A bond unit investment trust is an actively managed portfolio of bonds.
Choose wisely. There is only one correct answer.
False. A unit investment trust is managed, and is a fixed portfolio of securities.