Question

Complete the sentences about buying and selling bonds. Like stocks, bonds can be purchased through a(n) _______________. Bonds can also be purchased through a(n) _______________, such as an exchange-traded fund, or directly from the federal government. Bonds are given a rating ranging from _______________. It's probably best not to invest in a bond with a low rating. The two ways to make money from a bond are _______________.

Answer 1

Like stocks, bonds can be purchased through a brokerage firm. Bonds can also be purchased through a mutual fund, such as an exchange-traded fund, or directly from the federal government. Bonds are given a rating ranging from AAA (the highest rating) to D (the lowest rating). It's probably best not to invest in a bond with a low rating. The two ways to make money from a bond are through coupon payments and price appreciation.

Step-by-step explanation: