SEC 3.1
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SEC 3.1

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Questions and Answers

  1. Your customer calls you with a question. The customer tells you that they received a phone call from the bond desk telling them that a trade to purchase 20 bonds at 100 has been executed for their account. The customer would like to know how much they paid for the bonds before any commission or other charges. The answer to the customer's question is A. $2,000 B. $200,000 C. $1,000 D. $20,000

  • $2,000
  • $200,000
  • $1,000
  • $20,000 (correct)
    1. A 6% corporate bond trading on a 7% basis is trading A. at a discount B. at a premium C. with a current yield above 7% D. with a coupon rate below 6%

  • at a discount (correct)
  • at a premium
  • with a current yield above 7%
  • with a coupon rate below 6%
    1. If a bond has a feature that allows the issuer to pay off bondholders prior to maturity, the bond has A. a put feature B. a call feature C. a conversion feature D. a presale feature

  • a put feature
  • a call feature (correct)
  • a conversion feature
  • a presale feature
    1. Lando Entertainment, Inc., issues a bond collateralized by a trust holding the deed to the company's Las Vegas headquarters. This type of bond is called A. a collateral trust bond B. a guaranteed bond C.a headquarters debenture D. a mortgage bond

    <p>a mortgage bond</p> Signup and view all the answers

    1. Interest from a zero-coupon bond A. pays monthly and is taxed annually B. pays annually and is taxed at maturity C. pays at maturity and is taxed annually D. pays and is taxed at maturity

    <p>pays at maturity and is taxed annually</p> Signup and view all the answers

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