Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

AIWMI Exam CCRA-L2 Topic 3 Question 90 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 90
Topic #: 3
[All CCRA-L2 Questions]

Step up upon feature will lead to

Show Suggested Answer Hide Answer
Suggested Answer: B

Contribute your Thoughts:

Sophia
30 days ago
Hmm, the step-up feature sounds like a fancy way for the issuer to say 'We might raise your rates later.' I'll go with D to avoid getting stepped on.
upvoted 0 times
Thea
4 days ago
User 3: But wouldn't the bondholder be compensated if there's a step-up?
upvoted 0 times
...
Celia
8 days ago
User 2: I agree, I'll go with option D to avoid any surprises.
upvoted 0 times
...
Jacquelyne
16 days ago
User 1: I think the step-up feature is just a way for the issuer to increase rates later.
upvoted 0 times
...
...
Sylvia
1 months ago
This is a no-brainer. If the step-up isn't linked to the rating, it's just a gimmick. I hope the exam doesn't try to trick us with that.
upvoted 0 times
Gary
5 days ago
D) Will lead to a change only if there is a linkage to the issuer's rating
upvoted 0 times
...
James
6 days ago
I agree, it's important for the step-up to be linked to the issuer's rating to have a meaningful impact.
upvoted 0 times
...
Kati
15 days ago
A) no change as step is not linked to issuers rating
upvoted 0 times
...
Lizbeth
19 days ago
D) Will lead to a change only if there is a linkage to the issuer's rating
upvoted 0 times
...
Rachael
20 days ago
I agree, it's important for the step-up to be tied to the issuer's rating to have real impact.
upvoted 0 times
...
Glendora
25 days ago
A) no change as step is not linked to issuers rating
upvoted 0 times
...
...
Almeta
1 months ago
Good point, maybe I need to rethink my answer.
upvoted 0 times
...
Isaiah
1 months ago
Option B is tempting, but I think Paulene and 2 have a point. The step-up needs to be tied to the rating for it to affect the basis.
upvoted 0 times
Venita
25 days ago
Yes, without that linkage, the step-up feature may not necessarily lead to a positive basis.
upvoted 0 times
...
Rosalind
1 months ago
I agree, the step-up should be linked to the issuer's rating for it to have an impact.
upvoted 0 times
...
...
Clorinda
1 months ago
I agree with Paulene. The step-up feature is meaningless unless it's connected to the issuer's creditworthiness.
upvoted 0 times
Arlette
23 days ago
D) Will lead to a change only if there is a linkage to the issuer's rating
upvoted 0 times
...
Jackie
29 days ago
I think the step-up feature should be tied to the issuer's rating.
upvoted 0 times
...
Chanel
30 days ago
B) positive basis because the bond holder is compensated
upvoted 0 times
...
Christiane
1 months ago
A) no change as step is not linked to issuers rating
upvoted 0 times
...
...
Patria
2 months ago
But if there's no linkage to the issuer's rating, how can it be positive?
upvoted 0 times
...
Almeta
2 months ago
I disagree, I believe it's D.
upvoted 0 times
...
Patria
2 months ago
I think the answer is B.
upvoted 0 times
...
Paulene
2 months ago
Option D seems like the most logical choice. The step-up feature should only impact the basis if it's linked to the issuer's rating.
upvoted 0 times
Kenneth
1 months ago
So, it seems like the step-up feature won't have any impact if it's not connected to the issuer's rating. Option D is the way to go.
upvoted 0 times
...
Daniela
1 months ago
Yes, that's true. If there's no linkage to the rating, then it shouldn't really affect the basis.
upvoted 0 times
...
Beth
1 months ago
I agree, option D makes the most sense. The step-up feature should only matter if it's tied to the issuer's rating.
upvoted 0 times
...
...

Save Cancel