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CIMAPRA19-F02-1 Exam - Topic 1 Question 83 Discussion

Which TWO of the following statements about bonds and their issue are true?
A) Credit rating agencies assign risk categories to bond issues. and B) Bonds are a form of loan capital, traded on stock exchanges. and C) Bonds are a risk-free form of investing because they will always be repaid.
D) All bonds have the same terms and conditions when issued.
E) A bond issue is never underwritten because the return is fixed and guaranteed.

CIMAPRA19-F02-1 Exam - Topic 1 Question 83 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 83
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

Which TWO of the following statements about bonds and their issue are true?

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Suggested Answer: A, B, C

by Eun at Mar 16, 2024, 01:56 PM

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Lili
9 months ago
Yeah, underwriting is a thing, so E is off the mark.
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Dino
10 months ago
All bonds having the same terms? No way, that's not accurate.
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Margart
10 months ago
Wait, are bonds really risk-free? That sounds too good to be true.
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Amber
10 months ago
Totally agree, bonds are loan capital traded on exchanges!
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Jerry
10 months ago
Credit rating agencies definitely assign risk categories to bonds.
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Celeste
10 months ago
I recall a practice question where we discussed bond terms. I feel like option D is false because bonds can have different terms and conditions.
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Carin
11 months ago
I think option C is misleading. Bonds can default, so they aren't risk-free investments. I might lean towards A and B.
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Veronica
11 months ago
I'm a bit unsure about option B. I know bonds are a form of loan capital, but I'm not sure if they're always traded on stock exchanges.
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Skye
11 months ago
I remember studying that credit rating agencies do assign risk categories to bonds, so I think option A is definitely true.
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Mattie
11 months ago
Wait, are bonds really risk-free? I don't think that's accurate. I'll need to double-check my knowledge on the risks associated with bonds.
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Yesenia
11 months ago
I feel pretty confident about this one. Credit ratings, trading on exchanges, and varying terms and conditions - those all sound right to me. I'll mark those as true.
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Berry
11 months ago
Okay, I've got a strategy here. I'll go through each statement and evaluate whether it's true or false based on my understanding of bonds. That should help me identify the two correct answers.
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Veronique
11 months ago
Hmm, I'm a bit unsure about some of these statements. I'll need to think through each one carefully to determine which ones are true.
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Arminda
11 months ago
This looks like a pretty straightforward question about bonds. I'll start by reviewing what I know about bonds and their key features.
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Azzie
11 months ago
Hmm, I'm a bit unsure about this one. The options don't seem to directly address "technical planning" as mentioned in the prompt. I'll need to think carefully about which choice best fits that criteria.
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Rene
11 months ago
Okay, let me think this through. The question is asking about the /etc/nsswitch.conf file, so the keywords need to be specific to that configuration file. I'm going to go with dns and files.
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Elin
11 months ago
I vaguely remember a case where RDS had options for differentiating backup types. I would say it's more likely to be False.
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Louvenia
11 months ago
I can't recall exactly, but could the mcrypt extension really be linked to this kind of error? I thought it was more for data encryption.
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Leonida
11 months ago
Hmm, I'm not sure about this one. I know Kibana is used for logging, but I'm a bit confused about where exactly the index patterns should be configured.
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Kimi
1 year ago
I'm pretty sure the correct answer is 'All of the above, except C and E, because those are just plain silly.'
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Alecia
1 year ago
So, the correct statements are A and B. Bonds are definitely not always risk-free and underwriting is common in bond issues.
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Jules
1 year ago
I agree, C and E are definitely not true. Bonds are not risk-free and a bond issue can be underwritten.
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Cathern
1 year ago
I think A and B are correct, credit rating agencies do assign risk categories to bond issues and bonds are traded on stock exchanges.
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Caren
1 year ago
I'm going with A and B. The other options are just plain wrong, like someone trying to make a bond question sound more complicated than it is.
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Fannie
1 year ago
It's important to understand the basics of bonds before investing.
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Virgie
1 year ago
Bonds are definitely a form of loan capital, not risk-free like option C suggests.
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Timothy
1 year ago
Yeah, credit rating agencies do assign risk categories to bond issues.
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Buddy
1 year ago
I agree, A and B are the correct statements about bonds.
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Selma
1 year ago
E is a hilarious one. Bonds are always underwritten, otherwise how would they be issued? Clearly, the person who wrote this option has never heard of investment banking.
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Katheryn
1 year ago
C is clearly false. Bonds carry credit risk, and the return is not guaranteed. D is also incorrect, as bond terms can vary.
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Danilo
1 year ago
A and B are definitely true. Bonds are debt instruments and rating agencies do assess the risk associated with them.
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Winfred
1 year ago
I think statement A is true because credit rating agencies help investors assess the risk of bond issues.
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Omer
1 year ago
B) Bonds are a form of loan capital, traded on stock exchanges.
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Winfred
1 year ago
A) Credit rating agencies assign risk categories to bond issues.
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