Series 7 - General Securities Representative Exam

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Which of the following investments entails the largest amount of credit risk?

Treasury Notes
A
Mortgage Bond
B
GO Bond
C
IDRBs
D

Explanations

IDRBs do not have collateral pledged to back the bond. If the corporation defaults, there are no assets for bondholders to stake a claim against. They are only backed by lease payments made by a corporation. Remember that they are risky for the exam

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