Series 10 Exam Question 58: Answer and Explanation

Question: 58

AMBAC insures against:

• A. Losses on municipal bonds.
• B. Interest rate risk relating to municipal bonds.
• C. Market losses on municipal bonds for long-term investors.
• D. Credit risk of the issuer of municipal bonds.

Correct Answer: B

Explanation:

An out firm quote means that the dealer quoting the prices is obligated to trade with another party at those prices.