Finra Exam Series-63 Topic 8 Question 6 Discussion

Actual exam question for Finra's Series-63 exam

Question #: 6
Topic #: 8

Stable Corporation registered a bond issue that it plans to offer for sale in the state with the Administrator.

The bond has a par value of $1,000 and will pay interest of 7% a year, with the principal to be repaid in 5 years. The registration became effective on September 8th. The registration is effective

Auntil the maturity date on the bond.

Bfor one full year.

Cuntil December 31st of the same year

Dfor two full years.

Show Suggested Answer

Suggested Answer: B

The bond's registration is effective for one full year from the effective date of the registration.

by Denny at Mar 06, 2025, 12:20 AM

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Dorthy

4 days ago

I see your point, Johnna. It could provide more flexibility for the issuer if the registration is effective for two full years.

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Johnna

5 days ago

But what if the bond doesn't mature for more than a year? Wouldn't it be better if the registration is effective for two full years?

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Stefany

13 days ago

I agree with Fernanda, it makes sense for the registration to be effective until the bond matures.

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Lamonica

14 days ago

Ha, this question is a real head-scratcher. Maybe the bond is good until the maturity date, like option A? Or maybe the registration is valid for a full moon cycle, who knows?

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