n NISM Certifications
XV NISM Series XV
Medium

Identify the correct statement about Additional Tier 1 (AT1) Perpetual bonds.

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Junior to deposits but senior to other bonds

  2. Junior to deposits, interbank loans, and all other bonds

    Correct answer

  3. C

    Ranked below common equity

  4. D

    Rank below deposits but above other bonds

Why this is the answer

AT1 bonds are subordinated to deposits, interbank loans, and all other debt instruments, but rank above common equity. They help banks meet Basel III capital requirements.

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