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    Question

    Consider the following statements about Additional

    tier-1 (AT1) bonds is/are correct?         I.            These are unsecured bonds that have perpetual tenure.       II.            These bonds have a call option, which can be used by the banks to buy these bonds back from investors.     III.            Biggest portion of AT1 bonds is bought by retail investors.     IV.            These bonds are issued by Banks.
    A I, II and III only Correct Answer Incorrect Answer
    B II, III and IV only Correct Answer Incorrect Answer
    C I, II and IV only Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    Biggest portion of AT1 bonds is bought by the “Mutual Funds”.

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