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Question
Which of the following is true of Brady bonds?
A. They are uncollateralized.
B. They have a shorter maturity and a higher than promised coupon (yield) than the original sovereign loans.
C. The benefit from Brady bond is the "saving" from lower interest spreads required on such bonds.
D. Their value partly reflects the value of collateral underlying the principal and/or interest on the issue.
E. Their value fully reflects the credit risk rating of the country issuing the bonds.
Answer
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