Which of the Following Invests in U.S.Treasury Securities

question 138

Multiple Choice

Which of the following invests in U.S.Treasury securities?

• A)Junk bond fund
• B)Intermediate U.S.bond fund
• C)Municipal bond fund
• D)Short-term corporate bond fund
• E)World bond fund

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Definitions:

Stripped Treasuries

U.S. Treasury securities that have separated their interest and principal payments into two distinct securities, allowing investors to receive either a lump sum at maturity or periodic interest payments.

Treasury Securities

Debt instruments issued by the government to finance its expenditures, considered low-risk investments.

On the Run

Refers to the most recently issued (and therefore typically the most liquid) government bonds or securities.

Forward Rate

An agreed-upon rate for a financial transaction that will occur at a future date.