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Read The Fine Print. Analyze this sample bond fact sheet and answer the questions 1-10 with an option of A, B, C or D that

Read The Fine Print.
Analyze this sample bond fact sheet and answer the questions 1-10 with an option of A, B, C or D that follow.
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for question 11 Use what you learned from analyzing the Bond Fund Fact Sheet to answer this question.
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Une Factsheet sert Format Tools Add-ons Help Last edit was 10 minutes ago Normal text Arial 11 BIVA EIE Vanguard Total Bond Market Index Fund Investor Shares (veMFX) Aso avadable as an ETE (starting at the price of one share and not a lower cost as an aning Shwe mutual fund. Overview Plow Portomance Page Feeste Minimum Dnebo New views Fund facts Product summary This tond is designed to provide report US Investment ad bonds. Molecting this goal the fund invest wbout 30% incorporate bonds and TORUS bonds of short, medales and long-term A wir bond tunes one of Honda halos way of the Bonds the prera-prengendste Nowcase the land vestiment and some comemoration che corebon port Aset Category Dato as of 04/26/2018 Tere Band die Termond QUISH This lower than the of Bande wat nodig Save even more By contres TE M Fundu 33.000 DO 010 CUS and Fund Fact Sheet * mal Tools Add-ons Help Last edit was 10 minutes ago formal text Arial - 11 + BIVAD , T= =,=,= 2. Price and yield Risk potential $10.35 Price as of 09/20/2018 Change SEC yaeld 30.01. 0.101 Las More More 3.004 How the potential for risk facts your investment Performance Average letums is 2018 Show Hypothetical growth of 110.000 of/31/2010 Views 310 OME ament/d/1 jolldalEEWGofL.iH9ynyRNOKarEaXtgVROL XRzNJU/edit# Fund Fact Sheet 1 Tools Add-ons Help Last edit was 10 minutes ago Arial 11 + BI UA IEEE Important and performance Information The performance data shown represent performance, which is not agree of future results Investments and principalate will focuste so that imeshare when sot, may be more or less in the original cost Current performance may bewer righer than the performance de ched. Gerets on the performance Including standard returns as of the most recent quartered Performance et de reflect the deduction of the account service that may be applied when a Vanguard and balance bew $10.000 de performance would be were details on the sand Portfolio composition Distribution by Credit quality in of ind) as of 031/2016 Characteristics As of 2018 Fundo 19.4 billion Tool Bonde 04. US Government A Number of both Average mature vragen old som 4 years 61 140 Total 10.ON Format Tools Add-ons Help Last edit was seconds ago Normal text Calibri 11 + BIU A ODO. 15 1. What is the minimum investment for this fund? a. $3,000 b. $8,400 c. $10,000 d. $16,000 2. What is one risk of investing in bond funds? a. Increases in interest rates may cause the price of the bonds in the portfolio to decrease b. The fund's net asset value could grow higher Increases in interest rates may cause the price of the bonds in the portfolio to increase d. The fund invests in segments and maturities of a non-fixed income market 3. What is the level of risk with this investment? a Level 1 b. Level 2 Level 3 d. Level 4 bic trovare Bond Fund Fact Sheet no Format Tools Add-ons Help Last edit was seconds ago Normal text Calibri 11 BIVA GOO-DE %, which is lower than the average expense ratio of funds with 4. The expense ratio of this bond fund is similar holdings a. 0,0186: 32% b. 0.40; 27% C 0.80; 15% d. 0.15; 80% 5. What is the price and yield of this fund as of 9/20/2018? a. $0.01:0.10% b. $0,10:0.0194 $3.09 10.35% d. $10.35: 3.09% 6. The Spliced Barclays USAgg Foot Adix is the complete bond index against which this fund can be judged. What is one reason the Vanguard fund might consistently tag in comparison to the index? a. The bond fund holds all the same bonds in exactly the same percentages as the index. b. The bond fund is managed by Vanguard, so there is an investment fee tied to its prices The bord fund was poorly constructed to it will always tall behind the index 4. The index is actually consistently behind the Vaard fund M 11. Using information from the fact sheet, would you consider this bond fund to be a good investment choice? Explain why or why not, Vanguard Total Bond Market Index Fund Investor Shares (VBMFX) Also available as an ETE (starting at the price of one share) and at a lower cost as an Admiral Shares mutual fund. Overview Price & Performance Portfolio & Management Fees & Minimums Distributions News & Reviews Fund facts Product summary This fund is designed to provide broad exposure to US. investment grade bonds. Reflecting this goal, the fund invests about 30% in corporate bonds and 70% in U.S. government bonds of all maturities (short, intermediate and long-term issues). As with other bond funds, one of the risks of the fund is that increases in interest rates may cause the price of the bonds in the portfolio to decrease-pricing the fund's net asset value (NAV) lower. Because the fund invests in all segments and maturities of the fixed income market, investors may consider the tund their core bond holding View prospectus and reports Asset class Category Expense ratio as of 04/26/2018 Intermediate-Term Bond Intermediate-Term Bond 0.15% This is 80% lower than the average expense ratio of funds with similar holdings.. Save even more by investing in lower cost Admiral Shares or an ETE $3,000 0084 921937108 Vanguard Fixed Income Group Minimum investment Fund number CUSIP Fund advisor Price and yield Risk potential Price as of 09/20/2018 Change SEC yield $10.35 S0.01 + 0.10% + 3.09% 2 Les Risk Less Reward 3 4 5 More More Power How the potential for risk affects your investment Performance Average annual returns as of 06/30/2018 Show Quanwesend Montent View as a table Hypothetical growth of $10,000 as of 08/31/2018 SLE.000 34.800 $12.000 LOW ON Sad 2014 2016 2018 10 2012 Total Bond Mat Index in 109 inception 195 5 Total Bond Mkt Index Inv Spliced BloomBarc USAOg Fit Adjik (Berichmark) Important fund performance information The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate so that investors shares when sold, may be worth more or less than their original cost Current performance may be bower or higher than the performance data cred. Get details on the fund's performance, including standardized returns as of the most recent quarter end Performance data do not reflect the deduction of the $20 annual account service fee that may be applied when a Vanguard fund balance is below $10.000. Il this fee was included, performance would be fower. Get details on the funds expenses and fees Portfolio composition Distribution by credit quality (% of fund) as of 08/31/2018 U.S. Government Total Bond Makt Index toy 54.6% 5.4% 3.6% Characteristics as of 08/31/2018 Fund total net assets Number of bonds Average effective maturity Average_duration Yield to maturity $199.4 billion 8486 8.4 years 6.1 years 3.3% Aaa A 119 Baa 14.6 Total 100.0% Une Factsheet sert Format Tools Add-ons Help Last edit was 10 minutes ago Normal text Arial 11 BIVA EIE Vanguard Total Bond Market Index Fund Investor Shares (veMFX) Aso avadable as an ETE (starting at the price of one share and not a lower cost as an aning Shwe mutual fund. Overview Plow Portomance Page Feeste Minimum Dnebo New views Fund facts Product summary This tond is designed to provide report US Investment ad bonds. Molecting this goal the fund invest wbout 30% incorporate bonds and TORUS bonds of short, medales and long-term A wir bond tunes one of Honda halos way of the Bonds the prera-prengendste Nowcase the land vestiment and some comemoration che corebon port Aset Category Dato as of 04/26/2018 Tere Band die Termond QUISH This lower than the of Bande wat nodig Save even more By contres TE M Fundu 33.000 DO 010 CUS and Fund Fact Sheet * mal Tools Add-ons Help Last edit was 10 minutes ago formal text Arial - 11 + BIVAD , T= =,=,= 2. Price and yield Risk potential $10.35 Price as of 09/20/2018 Change SEC yaeld 30.01. 0.101 Las More More 3.004 How the potential for risk facts your investment Performance Average letums is 2018 Show Hypothetical growth of 110.000 of/31/2010 Views 310 OME ament/d/1 jolldalEEWGofL.iH9ynyRNOKarEaXtgVROL XRzNJU/edit# Fund Fact Sheet 1 Tools Add-ons Help Last edit was 10 minutes ago Arial 11 + BI UA IEEE Important and performance Information The performance data shown represent performance, which is not agree of future results Investments and principalate will focuste so that imeshare when sot, may be more or less in the original cost Current performance may bewer righer than the performance de ched. Gerets on the performance Including standard returns as of the most recent quartered Performance et de reflect the deduction of the account service that may be applied when a Vanguard and balance bew $10.000 de performance would be were details on the sand Portfolio composition Distribution by Credit quality in of ind) as of 031/2016 Characteristics As of 2018 Fundo 19.4 billion Tool Bonde 04. US Government A Number of both Average mature vragen old som 4 years 61 140 Total 10.ON Format Tools Add-ons Help Last edit was seconds ago Normal text Calibri 11 + BIU A ODO. 15 1. What is the minimum investment for this fund? a. $3,000 b. $8,400 c. $10,000 d. $16,000 2. What is one risk of investing in bond funds? a. Increases in interest rates may cause the price of the bonds in the portfolio to decrease b. The fund's net asset value could grow higher Increases in interest rates may cause the price of the bonds in the portfolio to increase d. The fund invests in segments and maturities of a non-fixed income market 3. What is the level of risk with this investment? a Level 1 b. Level 2 Level 3 d. Level 4 bic trovare Bond Fund Fact Sheet no Format Tools Add-ons Help Last edit was seconds ago Normal text Calibri 11 BIVA GOO-DE %, which is lower than the average expense ratio of funds with 4. The expense ratio of this bond fund is similar holdings a. 0,0186: 32% b. 0.40; 27% C 0.80; 15% d. 0.15; 80% 5. What is the price and yield of this fund as of 9/20/2018? a. $0.01:0.10% b. $0,10:0.0194 $3.09 10.35% d. $10.35: 3.09% 6. The Spliced Barclays USAgg Foot Adix is the complete bond index against which this fund can be judged. What is one reason the Vanguard fund might consistently tag in comparison to the index? a. The bond fund holds all the same bonds in exactly the same percentages as the index. b. The bond fund is managed by Vanguard, so there is an investment fee tied to its prices The bord fund was poorly constructed to it will always tall behind the index 4. The index is actually consistently behind the Vaard fund M 11. Using information from the fact sheet, would you consider this bond fund to be a good investment choice? Explain why or why not, Vanguard Total Bond Market Index Fund Investor Shares (VBMFX) Also available as an ETE (starting at the price of one share) and at a lower cost as an Admiral Shares mutual fund. Overview Price & Performance Portfolio & Management Fees & Minimums Distributions News & Reviews Fund facts Product summary This fund is designed to provide broad exposure to US. investment grade bonds. Reflecting this goal, the fund invests about 30% in corporate bonds and 70% in U.S. government bonds of all maturities (short, intermediate and long-term issues). As with other bond funds, one of the risks of the fund is that increases in interest rates may cause the price of the bonds in the portfolio to decrease-pricing the fund's net asset value (NAV) lower. Because the fund invests in all segments and maturities of the fixed income market, investors may consider the tund their core bond holding View prospectus and reports Asset class Category Expense ratio as of 04/26/2018 Intermediate-Term Bond Intermediate-Term Bond 0.15% This is 80% lower than the average expense ratio of funds with similar holdings.. Save even more by investing in lower cost Admiral Shares or an ETE $3,000 0084 921937108 Vanguard Fixed Income Group Minimum investment Fund number CUSIP Fund advisor Price and yield Risk potential Price as of 09/20/2018 Change SEC yield $10.35 S0.01 + 0.10% + 3.09% 2 Les Risk Less Reward 3 4 5 More More Power How the potential for risk affects your investment Performance Average annual returns as of 06/30/2018 Show Quanwesend Montent View as a table Hypothetical growth of $10,000 as of 08/31/2018 SLE.000 34.800 $12.000 LOW ON Sad 2014 2016 2018 10 2012 Total Bond Mat Index in 109 inception 195 5 Total Bond Mkt Index Inv Spliced BloomBarc USAOg Fit Adjik (Berichmark) Important fund performance information The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate so that investors shares when sold, may be worth more or less than their original cost Current performance may be bower or higher than the performance data cred. Get details on the fund's performance, including standardized returns as of the most recent quarter end Performance data do not reflect the deduction of the $20 annual account service fee that may be applied when a Vanguard fund balance is below $10.000. Il this fee was included, performance would be fower. Get details on the funds expenses and fees Portfolio composition Distribution by credit quality (% of fund) as of 08/31/2018 U.S. Government Total Bond Makt Index toy 54.6% 5.4% 3.6% Characteristics as of 08/31/2018 Fund total net assets Number of bonds Average effective maturity Average_duration Yield to maturity $199.4 billion 8486 8.4 years 6.1 years 3.3% Aaa A 119 Baa 14.6 Total 100.0%

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