Treasury Bonds Can Be Purchased Without Paying Transaction Costs Through

question 68

Multiple Choice

Treasury bonds can be purchased without paying transaction costs through:

• A) the U.S. Federal Reserve Bank.
• B) Treasury Direct.
• C) DSPs.
• D) discount brokers.

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Definitions:

Scheduled Payment

A pre-determined amount of money that is paid at regular intervals under the terms of a loan or lease agreement.

Compounded Semi-Annually

Interest on a loan or investment calculated twice a year, adding each interest payment to the principal.

Bond Interest

The interest received by a bondholder, typically paid semi-annually, on the bond's face value.

Equity Mutual Fund

A type of mutual fund that invests primarily in stocks, aiming to provide returns through dividends and capital gains.