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This is a SIE Exam Lesson 5 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over.
SIE Exam Lesson 5 Free Quizz
This is a SIE Exam Lesson 5 Free 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
1. Which of the following is an example of a fixed income investment?
A. bond
B. government note
C. collateralized mortgage obligations
D. all of the above
2. In fixed income investments, the par value ___.
A. is greater than the maturity value
B. is less than the maturity value
C. is equal to the maturity value
D. varies with the maturity value but with no general trend
3. Maturity value is the value the investor gets when his fixed income investment matures.
A. True
B. False
4. This is the date when the investor gets back the par value of his fixed income investment.
A. call date
B. declaration date
C. maturity date
D. payable date
5. Fixed income investments have stated interest rates except for ___.
A. serial bonds
B. series bonds
C. term bonds
D. zero coupon bonds
6. US government bonds have no call features.
A. True
B. False
7. Sinking funds are ___.
A. bonds that have depreciated its par value
B. a portion of money set aside every year to buy back the issued bonds
C. the difference between the bond’s par value and the yield of maturity
D. all of the above
8. Which of the following is associated with collateralized mortgage obligations?
A. Ginnie Mae
B. government bill
C. sinking funds
D. all of the above
9. These bonds are bought at a discount and mature at par value.
A. serial bonds
B. series bonds
C. term bonds
D. zero coupon bonds
10. These are bonds that have varying maturity dates that carry different interest rates.
A. serial bonds
B. series bonds
C. term bonds
D. zero coupon bonds
SIE Exam Lesson 5 Free Quiz: Fixed Income pt. 1: Continued
11. Which of the following does a zero coupon bond have?
A. interest rate
B. interest payment date
C. discount
D. all of the above
12. Which of the following does a term bond have?
A. interest rate
B. interest payment date
C. maturity date
D. all of the above
13. In a zero coupon bond, the difference between the value of the bond when it is bought and the value of the bond when it matures is the calculated yield.
A. True
B. False
14. Serial bonds are issued in a series of steps according to the cash needs of the issuer.
A. True
B. False
15. In the normal yield curve environment, ___.
A. the shorter the maturity on a fixed income investment, the lower the par value
B. the shorter the maturity on a fixed income investment, the higher the par value
C. the shorter the maturity on a fixed income investment, the lower the yield
D. the shorter the maturity on a fixed income investment, the higher the yield
16. In an inverted yield curve, ___.
A. the shorter the maturity on a fixed income investment, the lower the par value
B. the shorter the maturity on a fixed income investment, the higher the par value
C. the shorter the maturity on a fixed income investment, the lower the yield
D. the shorter the maturity on a fixed income investment, the higher the yield
17. When buying a discounted bond in the secondary market, which of the following is the correct set of yield in order of increasing value?
A. coupon yield, current yield, yield to maturity
B. yield to maturity, coupon yield, current yield
C. current yield, coupon yield, yield to maturity
D. All of the three yields would have equal value.
18. When buying a bond at par, which of the following is the correct set of yield in order of increasing value?
A. coupon yield, current yield, yield to maturity
B. yield to maturity, coupon yield, current yield
C. current yield, coupon yield, yield to maturity
D. All of the three yields would have equal value.
19. Bond accretion is the devaluation of the bond at par when the bond was bought at premium.
A. True
B. False
20. In a tax exempt bond at a premium, the amortized portion of the premium is deducted from the income of the buyer of the bond.
A. True
B. False
We hope you did well on this SIE Exam Lesson 5 Free Quiz
Total Course 37 hours 10 Min
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
The full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
New Series 7 Exam and SIE Exam details.
All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..
https://www.finra.org/industry/essentials-exam
- “Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
New Series 7 Exam
The New Series 7 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the four main job functions of a general securities representative. The table below lists the allocation of exam questions for each main job function.
Major Job Functions Percentage of Test Questions Number of Test Questions
(F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers 7% 9
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% 11
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73% 91
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11% 14
TOTAL 100% 125”
The five job functions of the new Series 7 General Securities Representative Exam will be:
“Seeks business for the broker-dealer through customers and potential customers”
“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”
“Opens accounts, transfers assets and maintains appropriate account records”
“Provides customers with information on investments and makes suitable recommendations”
“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”
These five functions of the new series 7 exam are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”
https://www.finra.org/industry/series7
Here is a link to the table of Contents
Here is what my customers say about my audio lessons
Testimonials
—————————
New Series 7 Exam and SIE Exam details.
FINRA has announced major changes to the Series 7 Exam effective October 1, 2018. With the introduction of the Securities Industries Essentials Exam (SIE Exam) the new series 7 has been pared down to 125 questions from its original 250 questions.
https://www.finra.org/industry/series7
However there is now a prerequisite before taking the new Series 7 Exam all candidates now must have passed the SIE exam (securities industry essentials exam). In addition thing a series 7 candidate must also have an industry sponsor in order to take the examination.
https://www.finra.org/industry/essentials-exam
“Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
Outline of SIE Exam:
https://www.finra.org/sites/default/files/SIE%20Outline-01.12.18.pdf
https://www.finra.org/industry/series7
https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf