Series 7  General Securities Representative Exam
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According to the IRS, If a bond is bought at 105, what is the tax basis if is held until maturity?
The original purchase price
A
The original purchase price as long as the premium was not amortized over the life of the bond
B
Par value minus the discount as long as the premium was not amortized over the life of the bond
C
Par value minus the premium as long as the premium was not amortized over the life of the bond
D
Explanations
The bond was bought at a premium. The original purchase price listed on your trade confirmation, assuming you did not choose to amortize the premium over the lifetime of the bond is the tax basis
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Part of the questions for each course

 Course
 Questions

 SIE
 20 of 150

 Series 6
 30 of 500

 Series 7
 50 of 625