CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Which of the following is INCORRECT concerning medium-term notes?
A. They have maximum maturities of up to 15 years.
B. They are shelf-registered.
C. They were originally meant to bridge the funding gap between commercial paper and long-term bonds.
Explanation: The term "medium-term" is misleading, as the maturities for medium-term notes can be very long (even greater than 30 years). Their issuance process (shelf-registration) is what distinguishes them from other bonds and notes.

User Contributed Comments 3

User Comment
kellyyang medium term note: maturities vary from 9 mns to 30 yrs
showmethemoney no, MTNs could theoretically be like 100 years
ascruggs92 ^it actually specifically says in the notes that MTN's have maturities from 9 months to 30 years
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