Which of the Following Is True of Sovereign Bonds

question 55

Multiple Choice

Which of the following is true of sovereign bonds?

• A)They are bonds backed by collateral.
• B)Brady bonds are replacing them because of their higher interest rates.
• C)Their benefit is the "savings" from not having to pledge U.S.Treasury bonds as collateral.
• D)Their value partly reflects the value of collateral underlying the principal and/or interest on the issue.
• E)They are not a segment in the secondary market for sovereign debt.

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Charge

A financial obligation, fee, or demand for payment for services rendered or goods provided.

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The selling of goods in large quantities at lower prices, typically to be retailed by others.

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To calculate or process information, typically using a computer.