In recent years security dealers have assembled pools of federal agency securities whose interest yield may be periodically reset based on what happens to a stated interest rate,or may carry multiple coupon rates that are periodically adjusted;the foregoing describes a:
A)financial futures contract.
B)revenue-anticipation note.
C)zero coupon instrument.
D)structured note.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

The description provided in the question matches that of a structured note. Structured notes are debt instruments that have customized features designed to suit the specific needs of the issuer or investor. The interest yield on these notes may be periodically reset based on what happens to a stated interest rate or may carry multiple coupon rates that are periodically adjusted. Security dealers often assemble pools of federal agency securities to create structured notes.

In Recent Years Security Dealers Have Assembled Pools of Federal