Vanguard Long-Term Bond Index Fund was incepted in March 1994 and is managed by The Vanguard Group. The objective of this fund is to seek a high and sustainable level of interest income. The fund attempts to match the performance of the unmanaged Lehman Brothers Long Government/Corporate Bond Index, which is made up of more than 1,500 bonds with maturities greater than ten years issued by the U.S. Treasury, federal agencies, and corporations. Since it is not cost-effective to own every security in the index, the fund invests in a large sample that matches key characteristics of the index (such as market-sector weightings, coupon interest rates, credit quality, and maturity). The fund (like the index) excludes Government National Mortgage Association and other mortgage-backed securities. The fund declares dividends on a daily basis and distributes on first business day of each month. Capital gains are distributed annually in December.