After providing Trey with advice on direct investment, Serena offered him additional information on alternative indirect investment strategies using (1) bond mutual funds, (2) exchange-traded funds (ETFs), and (3) total return swaps.
Trey expresses interest in using bond mutual funds rather than the other strategies for the following reasons.
1. Reason 1: Total return swaps have much higher transaction costs and initial cash outlay than bond mutual funds.
2. Reason 2: Unlike bond mutual funds, bond ETFs can trade at discounts to their underlying indexes, and those discounts can persist.
3. Reason 3: Bond mutual funds can be traded throughout the day at the net asset value of the underlying bonds.
Which of Trey’s reasons for choosing bond mutual funds as an investment vehicle is correct?
题干如上，答案选的B。想问一下C错在哪里。
