Which of the Following Bond Mutual Funds Has Both the Highest

question 130

Multiple Choice

Which of the following bond mutual funds has both the highest default risk and the highest interest rate risk?

• A) Long-term Treasury
• B) Short-term Ginnie Mae
• C) Short-term corporate
• D) Long-term high-yield

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Definitions:

Emotional Withdrawal

The process of detaching or distancing oneself emotionally from a situation or relationship.

Political Tactic

Strategies or maneuvers used by individuals or groups within an organization to gain advantage or power over others, often for personal gain.

Confidence

The feeling or belief that one can rely on someone or something; self-assurance.

Compromising

A conflict resolution strategy where both parties give up something of value to reach an agreement.