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 Clarification with CFA Level 1 Study
 
samsbery
1 posts
Joined
4/25/2010
Clarification with CFA Level 1 Study
Posted: 25 Apr 10 8:55 PM (Singapore)
Hi,

While going thru the CFA Level 1 Study Material (2010), I am having a clarification on Practice Problems for Reading 2, Page 115 (Question 16).

As per CFA Institute material the answer is B, which means By telling that "Bond is guaranteed by US Government and therefore the default risk of the bonds is virtually zero." is not in violation with the CFA Institute code and standards.

But where does the question says that Bond is Guaranteed by US Government ? Or we should take it as default that Treasury Bonds are Guaranteed by Government by its nature.

Please clarify.

Thanks
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