Question 9 2 pts What happens to Treasury Inflation-Protected Securities (TIPS) when the rate of inflation increases? The interest payment goes up The value of the bond's principal goes up The interest payment goes down The value of the bond's principal goes down Both the interest rate and the principal value of the bond go up Question 10 2 pts Municipal bonds are long-term debts issued by states and local governments. Municipal bonds typically offer lower interest payments than corporate bonds because municipal bonds: Are typically shorter in duration than corporate bonds Are federally insured whereas corporate bonds are not Are more liquid than corporate bonds Provide dividend reinvestment opportunities Offer interest that is exempt from federal taxation 2 pts The following is a definition that describes a type of investment that has grown tremendously in recent years: "A diversified set of passively managed stocks, bonds or other securities that is most often structured to act like an index mutual fund but typically charges lower fees and is traded at varying prices throughout the trading day (like individual stocks)." Which of the following investments is being described? Life cycle fund Value fund Exchange traded fund Annuity fund Target date fund Question 12 2 pts Which of the following terms refers most closely to the following definition: an actively-managed mutual fund that issues a fixed number of shares at inception that are not repurchased by the issuing company but are traded on the secondary market (like the New York Stock Exchange) based on supply and demand for the shares: Closed-End Fund Open-End Fund Externally-Traded Fund Diamond Investment Trust Non-Returnable Investment Trust