Description
A pension fund is seeking to invest a significant amount of money in bonds as part of the fund managers' diversification strategy. The fund managers are meeting this week to decide whether to allocate most of the money in municipal bonds or US Government Treasury securities. For this type of institutional investor, which type of bond would your recommend? Compare and contrast the advantages and disadvantages of both municipal and Treasury bonds, before making your recommendation.

Explanation & Answer

Attached.
1
Running head: DISCUSSION
Discussion
Institution Affiliation
Date
2
DISCUSSION
Discussion
A pension fund refers to a fund where pensions are paid from, it is made up of employers
and employees contributions and at other times both of them. The best type of bond where the
pension fund should consider investing is in the US Government Treasury securities. US
Government Treasury securities are o...

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