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NEW QUESTION: 1
Which one of the following four statements on the seniority of corporate bonds is incorrect?
A. In bankruptcy, holders of senior bonds are paid in full before any holders of subordinated bonds receive
payment.
B. Seniority refers to the priority of a bond in bankruptcy.
C. Junior bonds always pay higher coupons than subordinated bonds.
D. Senior bonds typically have lower credit spreads than junior bonds with the same maturity and payment
characteristics.
Answer: C
NEW QUESTION: 2
What are the primary reasons for taking an initial margin in a classic repo?
A. Collateral illiquidity and counterparty risk
B. Collateral illiquidity and legal risk
C. Counterparty risk and legal risk
D. Counterparty risk and operational risk
Answer: A
NEW QUESTION: 3
A. Option D
B. Option C
C. Option B
D. Option A
E. Option F
F. Option E
Answer: C,E