1. Bond Mutual Fund Risk. Discuss return and risk as they relate to bond mutual funds. What type of risk are all bond funds subject to? What other risk is associated with some bond funds? Describe the trade-off between risk and the expected return of bond mutual funds.

2. Investing in Mutual Funds. What should investors consider when deciding whether to purchase shares of a mutual fund? What characteristics of a mutual fund should be considered? Briefly discuss each characteristic.