CCRA CCRA-L2 AIWMI Study Notes

Interest costs go up and create refunding risk for those who have bonds maturing which need to be rolled over.

Interest costs go up and create rate risk for have bonds maturing which need to be rolled over.

None of the other options.

Interest costs go up and create funding risk for those who have borowing plans lined up.

There has been credit spread compression, which means the spreads have declines, which can be lead indicator of oncoming economy stress.

There has been widening of credit spread, which means the spreads have increased, which can be lead indicator of oncoming economy stress.C. There has been widening of credit spread, which means the spreads have increased, which can be lead indicator of oncoming economy stress.

There has been credit spread compression, which means the spreads have declines, which can be lead indicator of oncoming economy boom.

Interest based

CapitalC. Current

Fee Based

term to maturity and price of a bond are not related

The lesser is the risk associated with price of a bond

The higher is the return from the bond

The more risk in the price of a bond