- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 43. Fixed-Income Markets: Issuance, Trading, and Funding
- Subject 2. Primary and Secondary Bond Markets
CFA Practice Question
For an investment bank, which is the riskiest way to sell bonds?
A. Underwriting
B. Best efforts
C. Private placement
Explanation: Underwriting risk is the chance that the bond's price could decrease in the market between the time the investment bank buys the bond issue and sells it.
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