CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

In a basic sequential pay structure, ______

A. each bond class receives periodic interest and principal payments.
B. each bond class receives periodic interest. However, all principal received is paid first to one bond class until it is fully paid off, and further principal received will go to the next bond class.
C. all principal and interest received is paid first to one bond class until it is fully paid off, and the principal plus interest received will go to the next bond class.
Correct Answer: B

User Contributed Comments 0

You need to log in first to add your comment.