- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 42. Fixed-Income Securities: Defining Elements
- Subject 2. Bond Indenture
CFA Practice Question
A surety bond is issued by a(n) ______.
B. insurance company
C. trust
A. commercial bank
B. insurance company
C. trust
Correct Answer: B
Unlike a bank guarantee, a surety bond is issued by a rated, regulated insurance company. It is just like an insurance policy.
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