Which of the Following Bonds Would Be Appropriate for a Retired

question 63

Multiple Choice

Which of the following bonds would be appropriate for a retired person seeking a stream of income during retirement?

• A)U.S.Treasury
• B)Investment grade corporate bond
• C)Municipal bond
• D)All of the above are correct.

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Definitions:

Dividend Increase

An action taken by a company to raise the dividend amount paid to its shareholders, typically as a sign of strong financial health or increased profitability.

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.

Annual Dividend

This refers to the total amount of dividends a company pays out to its shareholders per year.