What advantages and disadvantages do bonds offer investors relative to stocks? What type of investors are likely to be interested in bond funds versus stock funds? What are the advantages and disadvantages of owning a bond fund vs. individual U.S. Treasury bonds? Is the answer different for individual municipal bonds or high-yield bonds? If a companys credit rating is upgraded, what will be the impact on the yield spread and price of the companys bonds? Why? Does a bond with a higher coupon rate have a higher risk than a comparable bond with a lower coupon rate? Does a bond with a higher yield for maturity (YTM) have higher risk than a comparable bond with a lower YTM? Which bond fund has higher risk (all else being equal): a fund with an average maturity of 10 years, or a fund with an average duration of 9 years? What are the functions of the credit analyst and the trader in the process of managing a bond fund? Why does the yield curve normally slope upwards? In what circumstances would the yield curve slope downward? What are the main differences and similarities between managing a municipal bond fund and a taxable corporate bond fund?