AIWMI Exam CCRA-L2 Topic 5 Question 107 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 107
Topic #: 5

[All CCRA-L2 Questions]

Step up upon feature will lead to

Ano change as step is not linked to issuers rating

Bpositive basis because the bond holder is compensated

Cnegative basis given that the bondholder is not compensated

DWill lead to a change only if there is a linkage to the issuer's rating

Show Suggested Answer

Suggested Answer: B

by Della at Feb 11, 2025, 05:30 PM

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2 days ago

Haha, step up? More like step on my toes with this question. I'm going with D, gotta have that linkage to the issuer's rating.

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7 days ago

I think step up upon feature will lead to no change as step is not linked to issuer's rating.

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10 days ago

Hmm, I think the answer is B. The bond holder is getting compensated, so that should lead to a positive basis.

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