The Primary Assets of a Pension Fund Are

question 5

Multiple Choice

The primary assets of a pension fund are

• A)money market instruments.
• B)corporate bonds and stock.
• C)consumer and business loans.
• D)mortgages.

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Definitions:

Coupon Bond

A debt security that pays the holder a fixed interest rate (coupon) over a specified period until its maturity.

Indenture Agreement

A formal contract between a bond issuer and a bondholder that specifies the terms of the bond.

Call Provision

A feature of a bond that allows the issuer to repay the bond before its maturity date.

Debenture Agreement

A legal document that specifies the terms of a bond issue, promising repayment of borrowed money plus interest at fixed intervals.