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Lesson 6-Save and Invest: Bonds-Lending Your Money Handout 2: What's Your Bond Knowledge? Matching Match the following terms using definitions from the lesson and Building

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Lesson 6-Save and Invest: Bonds-Lending Your Money Handout 2: What's Your Bond Knowledge? Matching Match the following terms using definitions from the lesson and Building Wealth 1. Bond 2 Treasury note A. B. C. Nominal, or face, value of a bond Debt obligation issued by private or public entity Treasury bond or note that is tied to inflation so that the principal amount of the investment increases or decreases according to the annual inflation rate Par value Premium ? 5. Yield (Current) Treasury bond Treasury bill Discount D. Calculated as coupon payment+ market price of the bond E. Interest rate stated on a bond expressed as a percentage of the par (face) value 9. US. savings bond 0 Treasury Inflation-Protected Security F Short-term investment issued by the U.S. government for one year or less Bond is sold for a price higher than its face value Bond is sold for a price lower than its face value Nontransferable registered bond issued by the U.S. gover- ment in denominations of $50 to $10,000 Government security with a term of more than 10 years; inter est is paid semiannually Government security with a maturity that can range from two to 10 years; interest is paid every six months Coupon rate G. H. I. J. K

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