CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 83 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 83
Topic #: 1

[All CIMAPRA19-F02-1 Questions]

Which TWO of the following statements about bonds and their issue are true?

ACredit rating agencies assign risk categories to bond issues.

BBonds are a form of loan capital, traded on stock exchanges.

CBonds are a risk-free form of investing because they will always be repaid.

DAll bonds have the same terms and conditions when issued.

EA bond issue is never underwritten because the return is fixed and guaranteed.

Show Suggested Answer

Suggested Answer: A, B, C

by Eun at Mar 16, 2024, 01:56 PM

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Caren

2 days ago

I'm going with A and B. The other options are just plain wrong, like someone trying to make a bond question sound more complicated than it is.

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Selma

3 days ago

E is a hilarious one. Bonds are always underwritten, otherwise how would they be issued? Clearly, the person who wrote this option has never heard of investment banking.

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Katheryn

4 days ago

C is clearly false. Bonds carry credit risk, and the return is not guaranteed. D is also incorrect, as bond terms can vary.

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Danilo

6 days ago

A and B are definitely true. Bonds are debt instruments and rating agencies do assess the risk associated with them.

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Winfred

17 days ago

I think statement A is true because credit rating agencies help investors assess the risk of bond issues.

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Omer

22 days ago

B) Bonds are a form of loan capital, traded on stock exchanges.

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Winfred

25 days ago

A) Credit rating agencies assign risk categories to bond issues.

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