MU Pimcos Conservative Airline Investment in Bonds and Bank Loans Questions

Question Description

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– Assume time is measured in years unless otherwise stated.


The Treasury issues a two-year bond today and a ten-year bond today. For which one will it pay a higher interest rate?

a. This question cannot be answered without the relevant auction data
b. The ten-year bond
c. The interest rate is equal because both bonds are issued on the same day.
d. The two-year bond


What are four risks of Treasury Securities outlined in CH09?

A. Price shock
B. Recession
C. Liquidity
D. Inflation
E. Interest Rate
F. False Value Investing
G. Stock Market
H. Default
I. Duration


Your investment mission is “invest in debt securities of the major U.S. airlines.” Which is the best Opportunity Investment for you?

A. A bond of Delta airlines.
B. Fidelity’s Targeted Airline Opportunities ETF, which invests in the stocks, bonds and equity of several boutique U.S. airlines.
C. Blackrock’s Low Volatility Airline ETF, which invests in the equity of America’s largest, most stable airlines.
D. Pimco’s Conservative Airline ETF, which invests in the bonds and bank loans of many U.S. airlines.

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