Which of the Following Is True of Brady Bonds

question 63

Multiple Choice

Which of the following is true of Brady bonds?

• A)They are uncollateralised.
• B)They have a shorter maturity and a higher than promised coupon (yield) than the original sovereign loans.
• C)The benefit from Brady bond is the 'saving' from lower interest spreads required on such bonds.
• D)Their value partly reflects the value of collateral underlying the principal and/or interest on the issue.

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