Series 65 Exam Lesson 19 Quiz

This is a Series 65 Exam Lesson 19 Quiz, Exam Lesson 19 Free Quiz which is covering Fixed Income. Try it and see how you do if you need help listen to the lesson over.

Series 65 Lesson 19 Quiz

This is a Series 65 Lesson 19 Quiz which is covering Fixed Income. Try it and see how you do if you need help listen to the lesson over.

Questions covered include

Questions:

1. Which of the following is the correct set of government bills in order of increasing length in which they are set?

A. bills, notes, bonds

B. notes, bonds, bills

C. bonds, notes, bills

D. All of the above government bills have equal duration in which they are set.

2. Which of the following is NOT a US government sponsored entity?

A. Fannie Mae

B. Freddie Mac

C. Ginnie Mae

D. Sallie Mac

3. A call feature is a compulsory redemption of the bond at a specific price.

A. True

B. False

4. A call protection period is _____.

A. a period of time which protects the bond holder from an increase in the interest rate

B. a period of time which protects the bond holder from a decrease in the dividend

C. a period of time which protects the bond holder from a call from the issuer

D. a period of time which protects the bond holder from a call from the transfer agent

5. It is best to quote a bond to a client in the most conservative yield.

A. True

B. False

6. It is the right of the bond holder to redeem the bond from the issuer on a specific date.

A. call feature

B. put feature

C. tending feature

D. refund feature

7. US treasury bonds are quoted in ___.

A. eighths

B. sixteenths

C. thirty-seconds

D. sixty-fourths

8. Corporate bonds are quoted in ___.

A. eighths

B. sixteenths

C. thirty-seconds

D. sixty-fourths

9. Bonds that trade flat are bonds without accrued interest.

A. True

B. False

10. Which of the following is a bond that trade flat?

A. defaulted bond

B. commercial paper

C. zero coupon bond

D. all of the above

Series 65 Exam Lesson 19 Quiz: Fixed Income 2: Continued

11. A basis point is 10th of a percentage point.

A. True

B. False

12. In calculating the price of a serial bond, the following are needed EXCEPT ___.

A. call date

B. maturity date

C. settlement date

D. yield basis quote

13. In corporate bonds, in the event of dissolution, which of the following is the correct set of obligation in order of decreasing priority?

A. preferred stockholders  secured creditors  debentures  unpaid wages, taxes, trade creditors

B. secured creditors  preferred stockholders  debentures  unpaid wages, taxes, trade creditors

C. secured creditors  unpaid wages, taxes, trade creditors  debentures  preferred stockholders

D. unpaid wages, taxes, trade creditors  debentures  secured creditors  preferred stockholders

14. The Trust Indenture Act of 1939 includes which of the following?

A. the terms of the issuance of bond

B. specific protections for the bondholders

C. important information for the full disclosure of the terms of that bond offering

D. all of the above

15. All of the following are secured debts EXCEPT ___.

A. debentures

B. equipment trust certificates

C. mortgage bonds

D. All of the above are secured debts.

16. Which of the following is NOT a characteristic of a commercial paper?

A. It is registered in the Securities and Exchange Commission.

B. It is usually in very large denominations.

C. It is usually issued at a discount.

D. Its maturity does not exceed 270 days.

17. It gives the bond holder the option of converting his debt in common stock at a set conversion ratio.

A.