SERIES 66 EXAM 2025/2026 QUESTIONS AND
VERIFIED ANSWERS || ALREADY GRADED
A+ | GUARANTEED PASS | LATEST
VERSION!!!
Duration - CORRECT ANSWER - measure of the sensitivity of a bonds market
price to changes in interest rate
small yield changes less than 1%
A zero coupon bond always has a duration to its maturity and coupon bonds
always have a lower duration - CORRECT ANSWER - because the coupon bonds
pay interest whereas the zero coupon has no interest payments
convexity - CORRECT ANSWER - used to measure bond price volatility for large
yield changes greater than 1%
After tax yield - CORRECT ANSWER - = Annual Interest X (100% - Investors
Tax Rate)
Yield to Call - CORRECT ANSWER - refers to the expected yield that the
investor will receive assuming the bond is called on the first or next available date
when assessing the safety of a bond an analyst would use : - CORRECT ANSWER
- cash flows, revenue to assets, and leverage ratios
**Would NOT use profitability ratios
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,Yield to call affected by: - CORRECT ANSWER - 1.) Call Premiums
2.) Time to Call Date
3.) Price Paid for the callable bond
Call Premium over the face or par value of the bond will cause - CORRECT
ANSWER - the yield to call on the bonds trading a a discount or par value to be
higher than the YTM
Call price that is equal to the face or par value of the bond, yield to call will be -
CORRECT ANSWER - - Higher than the YTM on bonds trading at a discount
- Lower than the YTM on bonds trading at a premium
Letter of Intent - CORRECT ANSWER - - 13 month to reach breakpoint
-Investment club not eligible
How do you qualify as a "Regulated Investment Company" - CORRECT
ANSWER - Pay out at least 90% of its net investment income annually
- means their exempt from paying tax on dividends which are distributed
Total Return on Mutual Fund - CORRECT ANSWER - - Beginning Price
- Beginning # of shares
- Ending price
- Ending # of shares
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, Redemption Fee - CORRECT ANSWER - fee charged to investors when they
redeem their shares
- The SEC limited redemption fees to 2%
Exchange Fee - CORRECT ANSWER - fee charged to investors if they exchange
or transfer shares of one fund for shares of another fund within the same fun family
Class A Shares - CORRECT ANSWER - -upfront sales charge
- FINRA rules say can't exceed 81/2%
- lowest annual expense charges
-provide sale charge breakpoints
Class B Shares - CORRECT ANSWER - - backend load
- contingent deferred sales load
-expense charge higher
-charged on declining scale
Class C Shares - CORRECT ANSWER - - no upfront sales load
-no back end load
-highest annual expense charges
Qualified Investor - CORRECT ANSWER - 1.) net worth of $2.1 million or more
2.)$1 million in assets invested under the specific investment manager
The term B/D does not include: - CORRECT ANSWER - 1. agents
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VERIFIED ANSWERS || ALREADY GRADED
A+ | GUARANTEED PASS | LATEST
VERSION!!!
Duration - CORRECT ANSWER - measure of the sensitivity of a bonds market
price to changes in interest rate
small yield changes less than 1%
A zero coupon bond always has a duration to its maturity and coupon bonds
always have a lower duration - CORRECT ANSWER - because the coupon bonds
pay interest whereas the zero coupon has no interest payments
convexity - CORRECT ANSWER - used to measure bond price volatility for large
yield changes greater than 1%
After tax yield - CORRECT ANSWER - = Annual Interest X (100% - Investors
Tax Rate)
Yield to Call - CORRECT ANSWER - refers to the expected yield that the
investor will receive assuming the bond is called on the first or next available date
when assessing the safety of a bond an analyst would use : - CORRECT ANSWER
- cash flows, revenue to assets, and leverage ratios
**Would NOT use profitability ratios
1|Page
,Yield to call affected by: - CORRECT ANSWER - 1.) Call Premiums
2.) Time to Call Date
3.) Price Paid for the callable bond
Call Premium over the face or par value of the bond will cause - CORRECT
ANSWER - the yield to call on the bonds trading a a discount or par value to be
higher than the YTM
Call price that is equal to the face or par value of the bond, yield to call will be -
CORRECT ANSWER - - Higher than the YTM on bonds trading at a discount
- Lower than the YTM on bonds trading at a premium
Letter of Intent - CORRECT ANSWER - - 13 month to reach breakpoint
-Investment club not eligible
How do you qualify as a "Regulated Investment Company" - CORRECT
ANSWER - Pay out at least 90% of its net investment income annually
- means their exempt from paying tax on dividends which are distributed
Total Return on Mutual Fund - CORRECT ANSWER - - Beginning Price
- Beginning # of shares
- Ending price
- Ending # of shares
2|Page
, Redemption Fee - CORRECT ANSWER - fee charged to investors when they
redeem their shares
- The SEC limited redemption fees to 2%
Exchange Fee - CORRECT ANSWER - fee charged to investors if they exchange
or transfer shares of one fund for shares of another fund within the same fun family
Class A Shares - CORRECT ANSWER - -upfront sales charge
- FINRA rules say can't exceed 81/2%
- lowest annual expense charges
-provide sale charge breakpoints
Class B Shares - CORRECT ANSWER - - backend load
- contingent deferred sales load
-expense charge higher
-charged on declining scale
Class C Shares - CORRECT ANSWER - - no upfront sales load
-no back end load
-highest annual expense charges
Qualified Investor - CORRECT ANSWER - 1.) net worth of $2.1 million or more
2.)$1 million in assets invested under the specific investment manager
The term B/D does not include: - CORRECT ANSWER - 1. agents
3|Page
