Even Bond Mutual Funds with Little or No Default Risk

question 66

True/False

Even bond mutual funds with little or no default risk have interest rate risk.

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Definitions:

Superordinate Goals

Goals that are shared and require cooperative efforts from individuals or groups that might otherwise have individual or conflicting objectives.

Compromise

An agreement or a settlement of a dispute that is reached by each side making concessions.

Negotiating

The process of discussing and reaching a mutual agreement between parties with differing needs or opinions.

Added Value Negotiating

A negotiation technique that focuses on creating additional value that can be shared between the parties, rather than merely splitting existing value.