CPFO Examination- Pensions schemes

CPFO Examination- Pensions schemes CPFO Debt Exam Intergenerational Equity - Correct Answer-Balancing the needs of the young and old. Specifically, often referred to as the idea that U.S. government entitlements, such as Medicare and Social Security, "over-benefit" the elderly at the expense of other age groups. Key variable for length of time bonds are issued - Correct Answer-Life of asset financed Factors for revenue bond limits - Correct Answer-Ability and willingness to raise rates and to maintain market accepted debt service coverage factors largest group that purchases tax-exempt bonds - Correct Answer-Individuals Default Risk - Correct Answer-the risk that the borrower will not pay the face value of a bond on the maturity date Credit Risk - Correct Answer-the probability that the borrower will fail to pay some of the interest or principal Market Risk - Correct Answer-Uncertainty about an investment's future value because of potential changes in the market for that type of investment Sector with lowest default rate - Correct Answer-. unfulfilled debt obligation - Correct Answer-. variables of timing debt sales - Correct Answer-. tax credit bonds - Correct Answer-Provide a tax credit to bondholders in lieu of the tax exemptions. Most tax credit bonds are designated for a specific purpose and are established as temporary programs through the tax code. Established by Congress. LIBOR - Correct Answer-LIBOR must not be used as a reference rate in new contracts after 12/31/21