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Question (Relevant to the Series 6, Series 7, Series 62, Series 65, and Series 82):
Which of the following statements are true about government agency-issued bonds?
I. They typically have a lower face value than other bonds
II. Interest is paid on a monthly basis
III. The maturity date is always specified
IV. They are known as high-risk investments
Answers:
A. II and III
B. III and IV
C. II only
D. I and II
Correct Answer: C. II only
Rationale: Government agency-issued bonds typically have higher face value than other bonds and their maturity dates are often not specified. Interest is typically paid on a monthly basis and these bonds are generally low-risk investments.
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