5. The holder of a convertible bond is required to convert the bond into stock (either common or preferred) at the bonds maturity. 6. Bonds can be either secured or unsecured. An unsecured bond issue is backed by the full faith and credit of the issuing entity. _7. The owner of a municipal bond will always benefit from tax-free income on all levels (federal, state and local). _8. A variable rate bond has a specific maturity date when it pays the bond principal, but it pays no periodic income. 9. Accrued Interest is: paid to the seller by the buyer paid to the buyer by the seller paid by the issuing firm to the seller paid by the issuing firm to the buyer