Which type of bond is a city or state most likely to use as a means of offsetting their cost of damages caused by a hurricane?
A)Convertible bond
B)NoNo bond
C)Cat bond
D)Put bond
E)CoCo bond

Question

Quizplus · Accepted Answer

A Cat bond (short for catastrophe bond) is a type of bond that provides insurance companies or other entities with a form of protection against major losses resulting from catastrophic events, such as hurricanes, earthquakes, or other natural disasters. This would be the most likely type of bond that a city or state would use to offset the cost of damages caused by a hurricane.

Which Type of Bond Is a City or State Most