Two Mutual Funds Are Quoted in the Newspaper as Follows

question 26

Multiple Choice

Two mutual funds are quoted in the newspaper as follows.

Given these quotes, which one of the following is true?

• A) Both funds are load funds.
• B) Fund A is a no-load fund.
• C) Fund B is a no-load fund.
• D) Both funds are no-load funds.

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Definitions:

Accrued Interest

Interest that has accumulated over a period of time but has not yet been paid or charged.

Semiannual Interest

Interest that is paid or calculated twice a year on a loan or investment.

Available-for-sale Securities

Available-for-sale securities are financial assets that are neither classified as held-to-maturity securities nor trading securities, and are recorded at fair market value on the balance sheet.

Fair Value

The estimated market value of an asset or liability, reflecting the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction.