(:BONDS " to choose an effective investment strategy or to execute that strategy well. As a result, an investor in the fund may lose money.  Some bond funds also may be exposed to event risk, the possibility that some corporate bonds may suffer a substantial decline in credit quality and market"
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(:BONDS " As a result, an investor in the fund may lose money.  Some bond funds also may be exposed to event risk, the possibility that some corporate bonds may suffer a substantial decline in credit quality and market buyout, or takeover. Restructurings are sometimes financed by a significant"
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(:BONDS " at maturity, the investor will receive the larger of the inflation-adjusted principal or the face amount even if deflation had reduced the adjusted principal amount to a sum that is less than the security's face amount.  Many funds are actively managed, meaning that the investment adviser uses"
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(:BONDS " buyout, or takeover. Restructurings are sometimes financed by a significant  increase in the company's debt an added burden that could hurt the credit quality  of the company's existing bonds. Still more risks can arise from the use of  derivatives, such as futures or options, whose values are linked to (or derived  from) the value of another asset or commodity. Because different derivative-trading"
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(:BONDS " Some bond funds also may be exposed to event risk, the possibility that some  corporate bonds may suffer a substantial decline in credit quality and market  value because of a corporate restructuring for example, a merger, leveraged  buyout, or takeover. Restructurings are sometimes financed by a significant  increase in the company's debt an added burden that could hurt the credit quality "
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(:BONDS " to offer them in a variety of maturities. Today, there are a few mutual funds  that specialize in these inflation-indexed bonds.  Many funds are actively managed, meaning that the investment adviser uses economic,  financial, and market analyses when deciding which bonds to buy or sell. Manager "
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(:BONDS " To address inflation risk, the U.S. treasury introduced a new type of bond  in 1997 - the Treasury inflation-indexed security. The interest rate paid by  the bond will remain constant during the life of the bond, but the principal  will be adjusted semiannually to reflect inflation. In periods of rising prices,  the principal of a Treasury inflation-indexed security will increase. This "
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(:BONDS " or the face amount even if deflation had reduced the adjusted principal amount  to a sum that is less than the security's face amount.  If this new type of bond is well received by investors, the U.S. Treasury plans  to offer them in a variety of maturities. Today, there are a few mutual funds "
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(:BONDS " a time of falling prices), the principal amount of a Treasury inflation-indexed security might be reduced. However, when the principal amount is repaid at maturity, the investor will receive the larger of the inflation-adjusted principal  or the face amount even if deflation had reduced the adjusted principal amount  to a sum that is less than the security's face amount."
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(:BONDS " in 1997 - the Treasury inflation-indexed security. The interest rate paid by  the bond will remain constant during the life of the bond, but the principal  will be adjusted semiannually to reflect inflation. In periods of rising prices,  the principal of a Treasury inflation-indexed security will increase. This  means that the interest payments will also rise because they are based on a "
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(:BONDS " the bond will remain constant during the life of the bond, but the principal  will be adjusted semiannually to reflect inflation. In periods of rising prices,  the principal of a Treasury inflation-indexed security will increase. This  means that the interest payments will also rise because they are based on a  larger principal amount. As a result, the buying power of the interest payments "
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(:BONDS " value because of a corporate restructuring for example, a merger, leveraged  buyout, or takeover. Restructurings are sometimes financed by a significant  increase in the company's debt an added burden that could hurt the credit quality  of the company's existing bonds. Still more risks can arise from the use of  derivatives, such as futures or options, whose values are linked to (or derived "
("6" 0.29988083
"Risks of Investing in Bond Funds
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(:BONDS " the bond will remain constant during the life of the bond, but the principal  will be adjusted semiannually to reflect inflation. In periods of rising prices,  the principal of a Treasury inflation-indexed security will increase. This  means that the interest payments will also rise because they are based on a  larger principal amount. As a result, the buying power of the interest payments "
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(:BONDS " or the face amount even if deflation had reduced the adjusted principal amount  to a sum that is less than the security's face amount.  If this new type of bond is well received by investors, the U.S. Treasury plans  to offer them in a variety of maturities. Today, there are a few mutual funds "
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