Reasons for Using a Bond Ladder Strategy Include

question 109

Multiple Choice

Reasons for using a bond ladder strategy include
I. typically higher rates on long-term bonds.
II. uncertainty concerning future interest rates.
III. lower tax rates on bonds held to maturity.
IV. reducing the amount of time spent managing the bond portfolio.

• A) I and III
• B) II and IV
• C) I, II and III
• D) I, II and IV

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Definitions:

Warranties of Title

Guarantees provided by a seller to a buyer that they legally own the item being sold and have the right to sell it.

Course of Dealing

The pattern of previous conduct between parties to a contract that establishes a common basis for their understanding.

Trade Usage

Common practices or customs within a particular industry, which can sometimes be recognized as legally binding in contractual agreements.

Express Warranty

A promise or guarantee made by a seller regarding the quality, functionality, or condition of a product, specifically stated to the buyer.