Series 7 - General Securities Representative Exam
Preview Mode
If an investor buys a 7 percent ZYX bond yielding 8.5%, the investor
Bought the bond at a premium
A
Bought the bond at par
B
Bought the bond at a discount
C
Must have bought the bond early
D
Explanations
The question states that the nominal yield is 7 percent and the bond is yielding 8.5 percent. The 8.5 percent is the yield to maturity. This means that the investor bought this bond below par; which is at a discount. There is no information to suggest that he bought the bond early
Pricing
Basic
Part of the questions for each course
-
- Course
- Questions
-
- SIE
- 20 of 150
-
- Series 6
- 30 of 500
-
- Series 7
- 50 of 625