Which One of the Following Types of Bond Funds Tends

question 18

Multiple Choice

Which one of the following types of bond funds tends to have the highest level of risk?

• A)short-term government
• B)intermediate-term corporate
• C)treasury
• D)high-yield
• E)single-state municipal

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Definitions:

Sales-type Lease

A lease agreement in which the lessor effectively transfers ownership and all risks and rewards of the asset to the lessee, resulting in immediate profit recognition.

Guaranteed Residual Value

The pre-determined value at which a leased asset is guaranteed to be worth at the end of the lease term, important for lease agreements.

Contingent Rentals

Lease payments that are not fixed but are instead based on the occurrence of a certain event or situation.