Active market of short-term finance

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The euronote issuance facility (NIF) provides an active market of short-term finance. Determine which of the following statements in relation to the NIF is incorrect.

-The NIF can be used to obtain medium-term finance through a rollover arrangement.

-Notes are sold in the market at a discount to the face value.

-An NIF issue is sold through a tender process where the issuer is required to specify a posted rate at which it is prepared to sell the notes.

-The clearing house often acts as the issuing and paying agent who is responsible for administering the facility on behalf of the issuer.

Reference no: EM132740687

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