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Please help to answer the questions, i have filled the form. Complete the bond comparison sheet below. Note the tickers symbols below each. These will
Please help to answer the questions, i have filled the form.
Complete the bond comparison sheet below. Note the tickers symbols below each. These will aid in finding the funds. Information is available on the Vanguard website at https://investor.vanguard.com/mutual-funds/vanguard-mutual-funds-list Click on the bond button to the left of the screen of the Vanguard website to sort out the bond funds. Answer the questions below after completing the bond fund sheet Bond Fund Comparison Sheet High-Yield Corporate VWEHX Intermediate-term Investment-Grade VFICX Intermediate-Term Tax-Exempt VWITX Intermediate-Term Treasury Fund VFITX Bond - Inter-term Low Quality Bond - Inter-term Investment Bond - Inter-term Investment Intermediate-Term Treasury Infation-Protected Securities Treasury No No yes,1.49% No No 6.52% 2.93% 1.88% 1.50% 1.86% Average effective maturity (Macaulay) 5.8 years 6.4 years 8.6 years 5.6 years 8.5 years Average duration 4.6 years 5.5 years 4.8 years 5.1 years 8.0 years B A AA AA+ AA+ Expense ratio 0.23% 0.20% 0.20% 0.20% 0.20% Return before taxes 1-year 0.13% 3.03% 2.60% 4.43% -0.83% 3-year 3.74% 2.32% 2.49% 1.25% -1.97% 5-year 6.21% 4.15% 3.66% 2.62% 2.37% 10-year 6.21% 5.40% 4.26% 4.81% 3.79% Type Tax exempt Yield-to-maturity Average credit quality Intermediate-Term Treasury Fund VIPSX 1. What are the factors that you would use to order the bonds from the lowest to highest yield-to-maturity. Describe the impact of each factor. 2. Are the yield-to-maturities in the expected order? Which ones stand out as being out of order, if any? 3. Why does the tax exempt fund (VWITX) have a lower yield-to-maturity than does the investment grade fund (VFICX)? 4. The intermediate term treasury fund (VFITX) is made up of intermediate duration bonds. Would you expect a fund made up of short duration treasury bonds to have a higher or lower yield-to-maturity? Why? 5. Why does the rank order of returns before taxes differ from the rank order of yield-to-maturitiesStep by Step Solution
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