A bond dealer buys at the clean price and sells at the dirty price. True False

That’s false! Bond dealers typically buy and sell bonds based on the clean price, which excludes accrued interest, and they may quote the dirty price—which includes accrued interest—when selling to customers. It’s like buying a cupcake at the shop for its base price but then selling it with icing and sprinkles when you're handing it over; the fluff is just extra sweetness! If you want to dive deeper into the world of bonds, consider exploring the different types of bonds available, such as government, municipal, and corporate bonds. Each serves a unique purpose and carries distinct risk levels. Understanding these will not only sharpen your investment skills but also help you make tasty decisions in the vast investment bakery!