Semi-Government Bonds

question 25

Multiple Choice

Semi-government bonds:

• A)are always floating rate bonds
• B)are more liquid than Treasury bonds
• C)trade at higher yields than Treasury bonds
• D)are issued by the AOFM on behalf of the issuer
• E)are listed on the ASX.

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Definitions:

Unused Debt Capacity

The additional amount a business or individual can borrow without harming creditworthiness, based on current financial obligations.

Spin-off

A corporate action where a company "spins off" a section as a separate business, leading to the creation of a new independent company.

Merger

The combination of two or more companies into a single entity, where one survives and the others cease to exist.

White Knight

A friendly investor or company that acquires a corporation at fair consideration, often to prevent it from being taken over by a hostile party.