Small municipalities issue municipai bonds sometimes and the amounts are not large. Investors often do not know those municipalities, In order for investors to buy those bonds, many of those bonds: have financial insurance those bonds seli at a deep discount the municipalities set aside assets to pay investors the Federal government guarantees those bonds No new data to save. Last checked at 6:27pm Suppose that you purchase a 182-day Treasury bill for $9.850 that is worth $10.000 when it matures. The security's annualized yield if held to maturity is about 2% 3% 6% 1% Not saved A sinking fund: requires specific approval by the firm's the board of directors is required by regulators requires the issuer to retire a bond issue incrementally over time is a special fund set up to pay of the creditors of bankrupt firms Repo market: A securities dealer doing a reverse repo will typically ask for a guarantee by the Fed. federal deposit insurance. bid-ask spread. haircut