Which of the following statements concerning agency bonds are correct?
I.Agency issues are normally noncallable or carry lengthy call deferment features.
II.Agency issues usually provide yields that are somewhat below the market yields for Treasuries.
III.All agency issues are backed by the full faith and credit of the U.S.government.
IV.New agency bonds are all issued in book entry form.

Question

Quizplus · Accepted Answer

Agency issues are typically noncallable or have lengthy call deferment features, and new agency bonds are issued in book entry form. However, not all agency issues are backed by the full faith and credit of the U.S. government, and they usually provide yields above, not below, Treasuries.

Which of the Following Statements Concerning Agency Bonds Are Correct