Module: | SLR, REITs & FVTPL Mandates
Q11: Bonds where the payment is linked to the movement in an equity index rather than an interest rate benchmark can be classified as HTM or AFS.
✅ Correct Answer: B
This statement is false.
Bonds where the payment is linked to the movement in a particular index such as an equity index (rather than an interest rate benchmark) do not meet the SPPI criteria.
Therefore, in the context of Investment Classification MCQs, they must be classified under FVTPL.
Bonds where the payment is linked to the movement in a particular index such as an equity index (rather than an interest rate benchmark) do not meet the SPPI criteria.
Therefore, in the context of Investment Classification MCQs, they must be classified under FVTPL.