Why is diversification important in bond investing?
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Question 3 of 6
3. Question
Which type of bond typically offers the highest yield?
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Question 4 of 6
4. Question
Scenario Question: You own corporate bonds from a company that has recently been downgraded by a credit rating agency. What is a prudent action to take?
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Question 5 of 6
5. Question
Scenario Question: The central bank announces a cut in interest rates. You hold long-term government bonds. How might this impact your bond investment, and what action could you consider?
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Question 6 of 6
6. Question
Scenario Question: You are considering buying municipal bonds for their tax-free interest. However, the issuing municipality is facing budgetary challenges. What should be your approach?