Al Is Retired and Enjoys His Daily Life

question 62

Multiple Choice

Al is retired and enjoys his daily life.His one concern is that his bonds provide a steady stream of income that will continue to allow him to have the money he desires to continue his active lifestyle without lowering his present standard of living.Although he has sufficient principal to live on,he only wants to spend the interest income provided by his holdings and thus is concerned about the purchasing power of that income.Which one of the following bonds should best ease Al's concerns?

• A)6-year, putable, high coupon bond
• B)5-year TIPS
• C)10-year AAA coupon bond
• D)5-year municipal bond
• E)7- year income bond

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Definitions:

Diastolic Murmur

A heart sound heard during the diastole phase of the cardiac cycle, potentially indicating heart valve issues or other abnormalities.

Hypertension

A chronic medical condition where the blood pressure in the arteries is persistently elevated, often leading to significant health risks if untreated.

Hypertension Prevalence

The proportion of a population that has high blood pressure at a given time.