Series 7 - General Securities Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

A municipality is preparing for a bond offering. Interest rates have been low, but they have risen just slightly in the past 3 months. The outlook is that interest rates will be going up due to the Federal Reserve outlook and tightening. Which of the following is the municipality MOST likely to do?

Issue long term bonds

A

Issue short term bonds

B

Delay the issuance

C

Call in their bonds that are issued at lower interest rates

D