SIE Exam Question 982: Answer and Explanation

Question: 982

All but which of the following are potential benefits of a bond swap?

• A. It can reduce an investor's tax liability.
• B. It can provide a higher rate of return.
• C. It can provide investment diversification.
• D. All of the above are correct.

Correct Answer: D

Explanation:

A bond swap can potentially reduce an investor's tax liability, provide a higher rate of return, and provide investment diversification.