CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Non-sovereign bonds usually trade at a higher yield than sovereign bonds with similar characteristics because non-sovereign bonds have higher ______.

I. credit risk
II. interest rate risk
III. liquidity risk
Correct Answer: I and III

User Contributed Comments 2

User Comment
maryprz14 higher credit risk?
then in the notes, non-sovereign bond receives higher credit rating due to low default rate... often higher yield than sovereign bonds.
I'm so confused.
khalifa92 true non-sovereign has low default risk but in comparison to sovereign you cant just give the same yield thus it's more (small percentage) due to credit risk and liquidity.
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