A(n) Blank______ fund is a mutual fund that invests in bonds and other debt securities. Multiple choice question. debt bond money market credit

Describe, compare, and contrast these types of investments: GICs, RRSPs, real estate, mutual funds, hedge funds, stocks and bonds

Which of the following investment has the lowest risks and lowest returns! EE savings bonds. Money market savings accounts. Real estate. Exchange-traded funds.

A sinking fund call on a bond:

Which type of investment is redeemable by investors at its Net Asset Value? Open end mutual fund Closed end mutual fund Exchange traded fund Unit trust

Explain the use of a sinking-fund provision. How can it reduce the investor’s risk?  What are protective covenants? Why are they needed? Explain the use of call provisions on bonds. How can a call provision affect the price of a bond? Explain the use of bond collateral, and identify the common types of collateral for bonds. What are debentures? How do they differ from subordinated debentures?  What is a bond indenture? What is the function of a trustee with respect to the bond indenture? What are the advantages and disadvantages to a firm that issues low- or zero-coupon bonds?

Target date mutual funds hold only debt instruments (e.g., bonds) with a maturity that matches the target date. True False

The market interest rate... Select the word list below: is the contractual interest rate used to determine the amount of cash interest the borrower. is listed by the bond indenture. is the rate investors demand for loaning funds Answer is the rate investors demand for loaning funds paid by

2. A. Define interest rate risk and reinvestment risk. B. Why do banks and life insurance companies/pension funds have different investment strategies and different tolerances to interest rate risk and reinvestment risk?

An issuer of bonds uses a sinking fund for the retirement of the bonds.  Cash is transferred to the sinking fund and subsequently used to purchase investments.  The interest and dividends earned in the sinking fund are Added to fund balance Reported as income      A. Yes Yes        B. Yes No        C. No Yes        D. No