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14. As you read the business news, you come across an advertisement for a bond mutual fund -a fund that pools the investments from a
14. As you read the business news, you come across an advertisement for a bond mutual fund -a fund that pools the investments from a large number of people and then purchases bonds, giving the individuals "shares in the fund. The company claims their fund has had a return of 1342 percent over the last year. But you remember that interest rates have been pretty low - 5 percent at most. A quick check of the numbers in the business section you're holding tells you that your recollection is correct. Explain the logic behind the mutual fund's claim in the advertisement 15. You are sitting at the dinner table and your father is extolling the benefits of investing in bonds. He insists that as a conservative investor, he will only make investments that are safe, and what could be safer than a bond, especially a U.S. Treasury bond? What accounts for his view of bonds? Explain why you think it is right or wrong
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