A Mutual Fund in Which Shares Are Issued Only When

question 6

Multiple Choice

A mutual fund in which shares are issued only when the fund is organized is called a(n) ____________ fund.

• A) closed-end
• B) open-end
• C) load
• D) no-load
• E) convertible

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Definitions:

Bond Premiums

The amount by which the market price of a bond exceeds its face value, often due to interest rates falling after the bond issuance.

Bond Indenture

A legal contract outlining the terms and conditions under which a bond is issued, including the interest rate and maturity date.

Face Amount

The nominal value of a financial instrument as stated on the face of the document, not including interest or earnings.

Contract Rate

The agreed-upon rate for financial transactions or payments defined in a contractual agreement.