Income Beginner: Bonds and Money Market Investments

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1.
You can buy series EE savings bonds only through TreasuryDirect.
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True. TreasuryDirect is now the only way to buy them.
2.
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.
3.
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.
4.
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.
5.
When a bondholder may redeem a bond before it matures, the privilege must be set down in a ________.
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Put provision. To "put" a bond is to redeem it via the bondholder. This privilege must be set down in writing before the bond is sold to the buyer.
6.
A _______ is a federal government security sold in auctions and at a discount.
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Treasury bill. This is the only money market investment sold this way.