CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Which of the following loans is typically not secured?
A. Collateral trust bond
B. Floating rate note
C. Equipment trust certificate
Explanation: Floating rate notes (FRNs) are bonds that have a variable coupon, equal to a money market reference rate (like LIBOR or federal funds rate), plus a quoted spread (a.k.a. quoted margin).

User Contributed Comments 2

User Comment
isida equipment trust certificates are serial bonds issued by corporations and are generally secured by pieces of machinery such as locomotives.
fmhp thank you isida.
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