Series 7 - General Securities Representative Exam
Training Mode
Which TWO of the following are TRUE of advance refunding in municipal bonds?
Municipalities typically use it to lower borrowing costs and to take advantage of lower interest rates & Municipalities use it when seeking to postpone their debt payments instead of than having to pay off a large amount of debt in the present
A
Municipalities typically use it to lower borrowing costs and to take advantage of lower interest rates & Municipalities use it when convertible bonds are about to be exchanged for the underlying asset
B
Municipalities use it when seeking to postpone their debt payments instead of than having to pay off a large amount of debt in the present & Municipalities use it when call options are about to expire in the underlying equity asset
C
Municipalities use it when seeking to postpone their debt payments instead of than having to pay off a large amount of debt in the present & Municipalities use it when convertible bonds are about to be exchanged for the underlying asset
D