Multiple choise question

What is the advantage of buying a bond fund?

A. Since bond funds are managed by professionals, even if interest rates go up, the professional managers can make sure the value of the bonds in the fund wont drop.

B. Since bond funds are managed by professionals, even if interest rates go down, the professional managers can make sure the value of the bonds in the fund wont drop.

C. Managers of mutual funds can buy bonds in much larger quantities than individuals can. These economies of scale allow the fund managers to get better prices than retail investors can get.

D. Bond funds are backed by the full faith and credit of the U.S. government.

E. Bond funds in the U.S. diversify risk even more than stock mutual funds, since they are required to own different types of bonds (such as corporate bonds, junk bonds, etc.).