Which of the following is true of sovereign bonds?
A) They are bonds backed by collateral.
B) Brady bonds are replacing them because of their higher interest rates.
C) Their benefit is the "saving" from not having to pledge U.S.Treasury bonds as collateral.
D) Their value partly reflects the value of collateral underlying the principal and/or interest on the issue.
E) They are not a segment in the secondary market for sovereign debt.
Correct Answer:
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