Medium-Term Notes (MTNs) Maturities | CTFA Exam Answers

Medium-Term Notes (MTNs) Maturities

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Question

Medium-term notes (MTNs) have maturities that range up to:

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Explanations

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A. B. C. D.

D

Medium-term notes (MTNs) are debt securities issued by corporations, financial institutions, and governments to raise capital. MTNs are typically issued with maturities ranging from 9 months to 30 years, although some issuers may issue notes with longer maturities.

Therefore, the correct answer to this question is C. Ten years (but no more). This means that MTNs can have maturities up to 10 years, but they cannot have maturities longer than 10 years.

It is important to note that the maturity of an MTN can affect its yield and price. Generally, the longer the maturity, the higher the yield and price risk. As such, investors should carefully consider the maturity of an MTN when making investment decisions.

In summary, MTNs have maturities ranging from 9 months to 30 years, but they can have maturities up to 10 years according to this question.