Ch. 13-Investing in Bonds

Corporate bonds are sold on the open market through brokers, just like stocks.

Municipal bonds generally pay a lower interest rate than corporate bonds.

There are two types of savings bonds, series I and series EE.

Bond prices

Bond redemption occurs when the bond is paid off at maturity.

Interest received on a corporate bond is not taxable.

When bonds sell for more than their face value, they are selling at a

You can buy up to $100,000 worth of U.S. savings bonds each year.

When stock prices are rising, bond prices are usually falling.

A revenue bond is a type of municipal bond that

A junk bond is any bond with a rating of Ba/BB or lower.

Secured bonds, called ______________, are backed by specific assets (property) of the issuing firm.

One main distinction between stocks and bonds is that

A bond ______________ tells an investor the risk category that has been assigned to a bond.

The amount a bondholder will be paid at maturity is called