IIA Exam IIA-CFSA Topic 9 Question 61 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 61
Topic #: 9

[All IIA-CFSA Questions]

Call provisions are often part of ______________, but usually not bonds issued by ______________.

AZero coupon bond, Federal Government bonds

BCorporate bonds, Zero coupon bonds

CCorporate and municipal bonds, bonds issued by Federal Government

DNone of these

Show Suggested Answer

Suggested Answer: C

by Mona at Sep 16, 2024, 03:53 AM

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Jackie

4 months ago

D, definitely D. I'm still trying to figure out what a 'call provision' even is. Is it like a coupon you can use at the bond store?

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Alexis

3 months ago

D, definitely D. I'm still trying to figure out what a 'call provision' even is. Is it like a coupon you can use at the bond store?

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Michal

3 months ago

D) None of these

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Marquetta

3 months ago

C) Corporate and municipal bonds, bonds issued by Federal Government

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Walker

3 months ago

B) Corporate bonds, Zero coupon bonds

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Samira

4 months ago

A) Zero coupon bond, Federal Government bonds

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Cherilyn

4 months ago

Hmm, I think the answer is C. But seriously, who has the time to read all those bond prospectuses? Just give me the ones with the most call provisions!

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Desire

3 months ago

I prefer bonds with call provisions. It gives me more flexibility in managing my investments.

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Reita

3 months ago

I think the answer is C too. Call provisions can really impact the return on investment.

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Kiera

3 months ago

I agree, call provisions can be confusing. I always look for bonds with fewer restrictions.

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Shawn

4 months ago

I always try to look for bonds with the most call provisions. It can be a good way to protect your investment.

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Emogene

4 months ago

I think the answer is B. Corporate bonds usually have call provisions.

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Raul

4 months ago

I agree, call provisions can be confusing. But they're important to understand.

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Launa

5 months ago

But they are usually not found in bonds issued by the Federal Government.

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Janey

5 months ago

I'm pretty sure the answer is C. I mean, the Federal Government is about as boring as it gets when it comes to bonds, right?

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Nu

4 months ago

So, the answer must be C then.

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Clement

4 months ago

Definitely, it makes sense that call provisions are not typically found in Federal Government bonds.

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Jovita

4 months ago

Yeah, call provisions are more common in corporate and municipal bonds.

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Wade

4 months ago

I think you're right, call provisions are usually not included in bonds issued by the Federal Government.

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Fairy

5 months ago

Yes, that's right. They allow the issuer to redeem the bonds before maturity.

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Launa

5 months ago

I think call provisions are common in corporate bonds.

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Nohemi

5 months ago

C'mon, who doesn't love a good call provision? It's like a little secret handshake between the bond issuer and the investor.

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Rebbecca

4 months ago

Yeah, they give the issuer the option to redeem the bond before maturity.

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Karon

5 months ago

I think call provisions are more common in corporate and municipal bonds.

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Vernice

5 months ago

I agree, call provisions can be a nice perk for investors.

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