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LOW-RISK CHOICES 11-1 PAGE 342

Horizontales
A type of mutual fund that invests in low-risk securities like a U.S. Treasury bills.
The biggest risk you face with a CD
Money set aside for a specific length of time at a fixed interest rate
Usually $100,000 or more, has a higher rate of interest but a greater risk
The fixed rate of interest that is paid semiannually for the life of a corporate bond
Like a savings account, but it offers a higher rate of interest in exchange for larger-than-normal deposits
A bond that sells for more than its face value
Not convertible to cash quickly or without a penalty
The amount of savings accumulated in a life insurance policy. The money you would receive if you cancel your policy
A bond that sells for less than its face value
Verticales
A bond that can be exchanged for shares of common stock at the option of the bondholder
A type of bond that is sold at a deep discount, does not provide interest payments, and is redeemable for its face value at maturity
A fee imposed to discourage depositors from withdrawing the money before the stated time period
Bonds issued by corporations to raise money. The money is used for buying equipment or building a factory
The date on which an investment becomes due for payment
The risk that has been assigned to the bond
A contract in which you make a lump-sum payment or series of payments that earn interest and receive regular disbursements, often after retirement