FINRA SIE Exam: FINRA SIE Exam Questions Answers: Latest Updated Guide Solution

A corporation has issued bonds at 8%. Three years later similar issues are being offered in the primary market at 7% which of the following statements will be true about the current yield and the nominal yield? (AnsThe current yield will be lower than the nominal yield. The dollar price of the bond will be at a premium. Nominal (stated) = .08 Market price of bond = .08/.07 = 1,143 Current Yield = 80 / 1143 = .06999 New issues of Government debt are issued in what form? Fully registered Fully registered to principal Book entry Mega super registered to a bro (Ans- Book entry All new corporate bonds are issued in what form? Fully registeredBook entry Mega man entry Registered to principal (Ans- Book entry zero coupon bond (Ans- a bond that makes no coupon payments and is thus initially priced at a deep discount call premium (Ans- The call premium is an amount over the face value of the security and is paid in the event that the security is redeemed before the scheduled maturity date. Put another way, the call premium is the difference between the call price of the bond and its stated par value. Who rates commercial paper?