CFA Level I · CFA Level I Exam · Fixed-Income Issuance and Trading
Which of the following issuers is most likely to issue debt that is classified as a supranational bond?
The World Bank is the most likely supranational issuer. Supranational bonds are issued by multilateral organizations formed by several countries, such as development banks. State governments issue sub-sovereign bonds, and corporations issue corporate bonds, so neither of those is a supranational issuer.
- AA state government financing a highway
- BThe World Bank financing development projectsCorrect
- CA large corporation financing a factory
Explanation
Supranational issuers are multilateral organizations such as the World Bank, IMF or regional development banks. A state government issues sub-sovereign (quasi-government or municipal) debt, and a corporation issues corporate debt.
Did you get it right without looking?
One question tells you little. A timed set on Fixed-Income Issuance and Trading shows your real accuracy, how long you take and where you lose marks.
More Fixed-Income Issuance and Trading questions
- In a public offering of bonds, an investment bank agrees to buy the entire issue from the issuer at a fixed price and then resell the bonds …
- A dealer quotes a corporate bond at a bid price of 98.40 and an ask price of 98.70 per 100 of par. An investor buys bonds with a par value o…
- Compared with a traditional dealer-based over-the-counter market, an all-to-all trading platform for bonds is most likely to:
- An investor wants to sell a large block of an illiquid corporate bond without moving the price. The venue most likely to help is:
- A corporation issues 90-day commercial paper with a face value of $5,000,000 at a discount rate of 4.8% per year on a 360-day basis. The pro…
- A corporate treasurer needs short-term funding of three months and wants to borrow in the wholesale market without pledging specific assets,…