1 2 1. What is the minimum investment for this fund? a. $3,000 b. $8,400 c. $10,000 d. $16,000 2. What is one risk of investing in bond funds? a. Increases in interest rates may cause the price of the bonds in the portfolio to decrease b. The fund’s net asset value could grow higher c. Increases in interest rates may cause the price of the bonds in the portfolio to increase d. The fund invests in segments and maturities of a non-fixed income market 3. What is the level of risk with this investment? a. Level 1 b. Level 2 c. Level 3 d. Level 4 4. The expense ratio of this bond fund is ____%, which is ____ lower than the average expense ratio of funds with similar holdings. a. 0.0186; 32% b. 0.40; 27% c. 0.80; 15% d. 0.15; 80% 5. What is the price and yield of this fund as of 9/20/2018? a. $0.01 ; 0.10% b. $0.10 ; 0.01% c. $3.09 ; 10.35% d. $10.35 ; 3.09% 6. The Spliced Barclays USAgg Float Adj Ix is the complete bond index against which this fund can be judged. What is one reason the Vanguard fund might consistently lag in comparison to the index? a. The bond fund holds all the same bonds in exactly the same percentages as the index. b. The bond fund is managed by Vanguard, so there is an investment fee tied to its prices. c. The bond fund was poorly constructed so it will always fall behind the index. d. The index is actually consistently behind the Vanguard fund. 7. What is the current net value of this bond fund? a. $136.7 billion b. $848.6 billion c. $846.1 billion d. $199.4 billion 8. How many bonds are held in this fund? a. 1,994 b. 1,367 c. 8,486 d. 8,613 3 9. If you invested this bond for $10,000 in 2008, how much would the bond be worth in 2018? a. $10,000 b. $12,000 c. $13,000 d. $14,000 10. Under portfolio composition, what types of bonds does this fund hold? a. 10% US government bonds, 90% corporate bonds b. 30% US government bonds, 70% corporate bonds c. 65% US government bonds, 35% corporate bonds d. 85% US government bonds, 15% corporate bonds Part II: What Did You Learn? Use what you learned from analyzing the Bond Fund Fact Sheet to answer this question. 11. Using information from the fact sheet, would you consider this bond fund to be a good investment choice? Explain why or why not. Yes because it is low risk. Also buying this bond diversifies my portfolio while also gaining me money. 4
