Income Beginner: Bonds and Money Market Investments

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1.
Banker's acceptances and revenue bonds are the two types of municipal bonds.
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False. General obligation bonds and revenue bonds are the two types.
2.
Which of the following contains more than one security?
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Money market mutual fund. A mutual fund buys numerous securities.
3.
Certificates of deposit are popular savings investments for people _______.
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Who do not want to take a lot of risk with their money. Certificates of deposit are low-risk investments and do not get high earnings.
4.
You can buy series EE savings bonds only through TreasuryDirect.
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True. TreasuryDirect is now the only way to buy them.
5.
What is the actual price of a government bond quoted at 92.4?
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$921.25. Government bonds are quoted as parts of $100. The 92 means $920. Amounts less than 1 are quoted in 32nds. Thus, the .4 in the quote means 4/32, which is $1.25. The quote works out to $920 + $1.25 = $921.25.
6.
When a bond is called back by the company, it is done so at the _______.
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Call price. This is the price at which it the holder must redeem the bond.