Finra Exam Series-7 Topic 7 Question 3 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 3
Topic #: 7

[All Series-7 Questions]

Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?

A5.00

B98.96

C100.00

D105.10

Show Suggested Answer

Suggested Answer: B

98.96. A calculator is not required for this. Even Bubba knows the bond is obviously trading at a slight discount by yielding 5.10% instead of the coupon rate of 5%. If the yield was the same as the coupon rate, the price is 100.00.

by Dottie at May 07, 2022, 05:17 AM

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!