CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Which type of secured bonds is issued to take advantage of the tax benefits of leasing?

A. Collateral trust bonds
B. Equipment trust certificates
C. Mortgage-backed securities
Correct Answer: B

An equipment trust certificate issue is secured by equipment or physical assets, as the title for the equipment is held in trust for the holders of the issue. When the debt is paid off, the equipment becomes the property of the issuer, as the title is transferred to the company.

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