An Investment-Type Financial Intermediary That Pools the Funds of Many

question 28

Multiple Choice

An investment-type financial intermediary that pools the funds of many investors to invest in several hundred or even thousands of stocks and/or bonds is called a/an

• A)mutual fund.
• B)no-load fund.
• C)load fund.
• D)closed-end fund.

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Definitions:

Coupon Rate

The interest rate on a bond paid by the issuer, which is a fixed percentage of the bond's face value, yielding regular interest payments to the bondholder.

Yield To Maturity

The total return anticipated on a bond if it is held until the date of its maturity, including all interest and principal repayments.

Semi-Annually

Occurring or calculated twice a year, often used in the context of interest payments or other financial assessments.

Face Value

The nominal or stated value of a bond, share of stock, or other financial instruments, typically used as a reference for calculating interest, dividends, or premiums.