Finra Exam Series-6 Topic 7 Question 59 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 59
Topic #: 7

Jack purchased a new bond of the Candlestick Corporation for its face value of $1,000. The bond has a coupon rate of 3.5%, makes semiannual interest payments, and matures in fifteen years. A year after purchasing the bond, Jack needs to sell the bond to offset some major expenses he incurred when his home caught on fire. Interest rates in the economy at this time have fallen to 3.0%.

Given this scenario, when Jack sells the bond, he can expect to receive which of the following?

Amore than what he originally paid for the bond.

Bless than what he originally paid for the bond.

Cexactly what he paid for the bond.

D$965, which is what he paid for the bond less the $35 in interest he received during his year of owning the bond.

Show Suggested Answer

Suggested Answer: C

If Mr. Gaunt believes he is still due money from Savvy, and Savvy disagrees, Ari has six years to submit his claim to arbitration under FINRA's Code of Arbitration. Ari cannot sue Savvy in a court of law, and the decision of the arbitration panel is final.

by Bette at Apr 22, 2023, 03:24 AM

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Stephanie

4 days ago

I think Jack will receive less than what he originally paid for the bond because interest rates have fallen.

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