Mutual funds that are composed of bonds that offer periodic coupon payments are called ____ mutual funds.

Question

Quizplus · Accepted Answer

Income mutual funds are composed of bonds that offer periodic coupon payments, which provide investors with a steady stream of income. Tax-free mutual funds invest in municipal bonds that generate tax-exempt interest income, and high-yield mutual funds invest in bonds with low credit ratings that offer higher yields but come with higher risks. Growth mutual funds invest in stocks that have the potential for capital appreciation. Therefore, the best choice for this question is B.

Mutual Funds That Are Composed of Bonds That Offer Periodic