Understanding Bond Fund Fact Sheets

What is the main focus of this tutorial?

• How to invest in stocks

• How to read a bond fund fact sheet

• How to manage a personal budget

• How to save money

Which of the following is NOT a type of bond mentioned?

• Treasury bond

• Corporate bond

• Savings bond

• Municipal bond

What percentage of the Vanguard Intermediate-Term Treasury Fund's assets are government-issued?

• 50%

• 100%

• 60%

• 80%

What does the expense ratio represent?

• The income generated by the fund

• The risk level of the fund

• The cost of owning the fund

• The total assets of the fund

What is the SEC yield of the bond fund if you invest $100?

• 67 cents per year

• 1 dollar per year

• 50 cents per year

• 75 cents per year

On a risk scale of 1 to 5, where do bond funds generally fall?

• 4

• 3

• 2

• 1

Why do bond funds tend to underperform compared to their index?

• Higher risk

• Higher expenses

• Lower interest rates

• Lower diversification

What would be the approximate value of a $10,000 investment in the fund after ten years?

• $12,000

• $11,500

• $13,364

• $15,000

What percentage of the fund's portfolio is composed of U.S. government bonds?

• 100%

• 99.3%

• 95.3%

• 90.3%

If interest rates increase by 1%, by how much would the fund's value decrease?

• 7%

• 1%

• 3%

• 5%