Series 6 Practice Exam 2025 – Complete Exam Prep Resource

The correct answer is grounded in the regulatory requirements set by the SEC for bond fund advertising. Specifically, when promoting a bond fund's yield, the SEC mandates that the advertising must include performance data for multiple time frames: 1 year, 5 years, and 10 years. This guideline is designed to provide potential investors with a comprehensive view of the fund's historical performance over both short and longer durations, facilitating better-informed investment decisions.

Including yield performance data for these specific time frames helps potential investors understand how the bond fund has performed across various market conditions. The one-year data point offers insight into recent performance, while the five-year and ten-year figures allow investors to gauge the fund's consistency and reliability over a longer horizon. This holistic approach aligns with the SEC's objective of promoting transparency and fairness in the advertising of investment products.