b. 0. & 39. With regard to bond ratings: a. Pension funds can only invest in bonds considered to be investment grade and above. pi AAA bonds pay the highest interest rates. C. CCC bonds have the least amount of risk. d. Bond ratings are determined by Federal Reserve banks. Bond ratings must be disclosed in the prospectus. 40. Which of the following statements is true? Registered bonds make it easier for the IRS to tract interest income, b. General obligation municipal bonds are tied to a specific project. Revenue municipal bonds are paid from the general taxing authority of the issuing entity. d. The value of municipal bonds goes down as personal tax rates go up. Subordinated bonds are paid after equity. 41. Which of the following statements is true? TIPS are instruments that b. Zero-coupon bonds are a tax-advantaged instrument because they are only issued by municipals. Strips take the principal away from the bond and never give it back. d. Strips take individual coupons from treasuries and essentially make a zero-coupon bond. e. Zero-coupons are never taxed. c. e. al. C