← Chapter 10 Test
5 Written Questions
5 Matching Questions
- zero-coupon bond
- investment grade bonds
- no-load fund
- mortgage bond
- a a mutual fund in which the individual investor pays no commision.
- b are bonds that are issued by financially stable companies or municipalities.
- c a bond tha provides no interest payments and is redeemed for its face value at maturity.
- d a report that provides potential investors with detailed information about a particular mutual fund.
- e sometimes referred to as a secured bond, is a bond that is backed by assets of the corporation.
5 Multiple Choice Questions
- are payments made to shareholders that result from the sale of securities in the fund's portfolio.
- are the earnings a fund pays to shareholders.
- a bond that is backed by the full faith and credit of the government that issued it.
- allows a corporation to buy back bonds from bondholders before the maturity date.
- amount one share of a mutual fund is worth.
5 True/False Questions
serial bonds → are bonds issued at the same time that mature on different dates.
capital gain → is the date when a bond will be repaid.
face value → allows a corporation to buy back bonds from bondholders before the maturity date.
12b-1 fee → a fee that an investment company charges to help pay for marketing and advertising a mutual fund.
bearer bond → a bond that is not registered in the investor's name.