Medium Term Notes (MTN) differ from other bonds in that they are issued how?

• A. Issued continually by an issuer and not in a single tranche
• B. Always issued in a single fixed tranche
• C. Only used in the US
• D. Have no fixed rates

Answer: (A)

Medium Term Notes are issued under a continuous issue program, allowing new notes to be sold over time rather than in a single fixed issue. This programmatic approach gives the issuer flexibility to raise funds as needed, in different maturities and often in different currencies, without having to complete a new issuance each time. The notes within the program can carry fixed or floating rates, so the idea that they have no fixed rates isn’t accurate. They’re also not limited to the US. The defining point is the ongoing, multi-tranche issuance under a program, rather than a one-off bond issue.