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AFE · Question #150

What limits the repurchase price to a stipulated percentage of the face amount of the certificate?

The correct answer is D. Par cap provision. See the full explanation below for the reasoning.

Question

What limits the repurchase price to a stipulated percentage of the face amount of the certificate?

Options

  • APrice-cap provision
  • BInvestment provision
  • CLimit provision
  • DPar cap provision

How the community answered

(43 responses)
  • A
    12% (5)
  • B
    7% (3)
  • C
    5% (2)
  • D
    77% (33)

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