1) An informed investor can expect to consistently outperform the market.
2) Matching a bond’s duration with the time the funds are needed reduces reinvestment
risk.
3) A publicly held bond has a trustee who enforces
the terms of the indenture.
4) An investor may expect a bond to be called if its current yield exceeds the yield to
maturity.
5) Economies go through regular, identifiable cycles that can be forecasted with
accuracy.
6) A global fund invests solely in foreign securities.
7) Inflation, which is a general decline in prices, is the source of financial risk.
8) Euro-bonds are denominated in dollars.
9) A bond with a balloon payment cannot not have a sinking fund.
10) A position in a futures contract is canceled (offset) by entering into the opposite
position.