26-84 These bonds have some prepayment protection and expected durations of five to seven years depending on the level of interest rates and are primarily purchased by pension funds and life insurance companies.
A)Class A bonds.
B)Class R bonds.
C)Class C bonds.
D)Class Z bonds.
E)Class B bonds.

Question

Quizplus · Accepted Answer

Class B bonds are the ones that have prepayment protection and expected durations of five to seven years depending on the level of interest rates, which make them primarily purchased by pension funds and life insurance companies. None of the other classes mentioned have the same characteristics.

26-84 These Bonds Have Some Prepayment Protection and Expected Durations