Free SERIES 7 Exam Braindumps (page: 4)

Page 4 of 101

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

  1. 5.00
  2. 98.96
  3. 100.00
  4. 105.10

Answer(s): B

Explanation:

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.



Bonds are most often quoted as a percentage of:

  1. face value
  2. book value
  3. market value
  4. whatever value the broker says

Answer(s): A

Explanation:

face value. The price is 100.00 if the yield is the same as the coupon rate. A price of less than
100.00 means the yield is higher than the coupon rate. A price of more than 100.00 means the yield is lower than the coupon rate. The prices are a percentage of 100.00. However, treasury bonds and municipal bonds are not quoted in this way.



Which of the following is a right for shareholders of common stock?

  1. the right to have the stock price increase
  2. the right to vote about important matters of the company
  3. the right to dividends
  4. both B and C

Answer(s): B

Explanation:

the right to vote about important matters of the company. Shareholders have no expectation of stock price increase or dividends. They are entitled to receive dividends only if the board of directors declares them.



Who owns a corporation?

  1. the owners of debentures
  2. the holders of common stock
  3. the holders of common stock and the holders of preferred stock
  4. the government

Answer(s): C

Explanation:

the holders of common stock and the holders of preferred stock. The holders of all classes of stock are the owners. Each stock class has separate privileges, but all represent ownership. Even if the government is an owner, it holds shares of stock.



Page 4 of 101



Post your Comments and Discuss FINRA SERIES 7 exam with other Community members:

aparna commented on June 10, 2024
yes can please upload the exam?
Anonymous
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Karan Patel commented on August 15, 2023
yes, can you please upload the exam?
UNITED STATES
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Karan Patel commented on August 15, 2023
Yes, Can you please upload the exam?
UNITED STATES
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Victor Lin commented on November 13, 2016
Will take the exam shortly and will update the result here again. Hope this paper can help.
AUSTRALIA
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Vivek commented on July 18, 2016
Using it for the first time....will share post once done. Thanks for providing the same.
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Arihant commented on January 20, 2016
Will Give exam in next 2 weeks. Very happy to purchase from Braindumps. Thanks you very much.
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