CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

When assessing the credit risk of tax-backed municipal bonds, an analyst should consider the following factors ______.

I. the issuer's debt structure
II. the issuer's budgetary policy
III. flow of funds structure
IV. the issuer's political discipline
Correct Answer: I, II and IV

One more factor is the issuer's socio-economic environment.
III should be evaluated for revenue bonds.

User Contributed Comments 2

User Comment
danlan2 IV=Local tax and intergouvernmental policy?
praj24 Lol these questions, I just relate to the Greek drama.
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