Issuing bonds has the following disadvantage. a) The bondholders have voting rights. b) Bond interest expense is not tax deductible c) Interest must be paid on a periodic basis regardless of earnings d) Bondholders may require early repayment. 12. term. Your best strategy would be to You expect interest rates to rise in the short a) buy T-bills and keep rolling them over b) buy long bonds and use interest income to purchase higher yields c) buy short bonds only and keep rolling them over d) buy T-bills in anticipation of locking higher rates in when they rise 13 The additional yield required by investors to compensate for default risk is referred to as a) risk premium b) market risk premium. c) premium. d) risk at market premium. 14. Mutual funds, which sell units directly to investors and repurchase units from investors who want to sell, are called open-market funds bi closed-market funds eclosed-end funds a open-end funds 15. Which is the best reason for investing in mutual funds? aDiversification b Portfolio managers always outperform individual investors olt is easy to find an investor willing to purchase your mutual fund in the secondary market aSector investment goals