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Over the next years, you expect interest rates to rise. What impact do you expect that to have on the bond funds? a. I expect

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Over the next years, you expect interest rates to rise. What impact do you expect that to have on the bond funds?

a.

I expect VUSTX to increase and VFICX to decrease

b.

The change in interest rates will have an unknown impact on yields

c.

I expect VUSTX to decrease and VFICX to increase

d.

The change in interest rates will not impact bond yields

e.

I expect it to increase yields on both bond funds

f.

I expect it to reduce yields on both bond funds

Bond Comparison Sheet Long-term Treasury Fund Intermediate-term Investment grade Ticker VUSTX VFICX Objective To provide a high and sustainable level of current income To obtain a moderate and sustainable level of income Type Treasury Corporate Duration 17.41 5.91 Credit quality Treasury AAA/AA/BBB Tax exempt No No Inflation protection No No Portfolio turnover (percent) 96% 114% Total annual costs 0.20% 0.20%

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