All of the following are types of innovative bonds except:
A) preferred stock.
B) asset-backed bonds.
C) reverse floaters.
D) indexed bonds.

Question

Quizplus · Accepted Answer

Preferred stock is not a type of bond. It is a type of equity security, which pays a fixed dividend and is senior to common stock in terms of payment priority, but it does not have a maturity date like a bond. Option B, C, and D are all types of innovative bonds: asset-backed bonds are secured by a pool of assets, such as mortgages or auto loans; reverse floaters have a variable interest rate that moves opposite to a benchmark rate; indexed bonds have a coupon rate that is tied to an inflation index.

All of the Following Are Types of Innovative Bonds Except