Question $3$

Which of the following statements regarding bonds and bond funds can be considered true?

Select one:

Bonds provide a variable income as the interest rates change over time

Bonds have a shorter period of maturity compared to bond funds

Bondholders are not exposed to any risk as the interest rate is locked$-$in at the time of purchase

Bond funds invest in bonds and debt instruments and never pay dividends

Bond funds invest in bonds and debt instruments and pay periodic dividends