CANNON TRUST SCHOOL II SAMPLE EXAM QUESTIONS ADVANCED
TRUST ADMINISTRATION TAXATION INVESTMENTS AND ESTATE
PLANNING VERIFIED ANSWERS
ANSWER Convertible Bonds are bonds that have the ability to be exchanged
for stock.
If something happens, a corporation will probably call bonds it has previously
issued (provided bonds are callable). ANSWER : Declining Interest Rates
What is the lowest S&P rating that would be considered investment grade? -
REPLY BBB-
Which of the following organizations is liable for paying taxes on a treasury
bill? ANSWER : Increased marketability and liquidity
Zero-coupon bonds are held in a trust that you oversee. What should you do to
find the tax liability? ANSWER : Every year, report the annual accrual.
What will investors do if they anticipate an increase in interest rates?
ANSWER Duration Decrease
An ANSWER Revenue Bond Issue is a type of municipal bond issue that is
backed by the proceeds from a bridge or toll road.
Mutual fund dividend distributions are either qualifying dividends or ordinary
income, depending on the investor's status.
The capitalization of open-end and closed-end investment firms varies.
Investment firms are required to provide their shareholders with financial
statements on a semiannual basis.
ANSWER today's closing price is used to calculate the price an investor will
spend today to buy an open-end investment company.
According to the "conduit" idea, only the shareholder is responsible for paying
the taxes due on dividends and interest paid by a regulated investment business.
TRUST ADMINISTRATION TAXATION INVESTMENTS AND ESTATE
PLANNING VERIFIED ANSWERS
ANSWER Convertible Bonds are bonds that have the ability to be exchanged
for stock.
If something happens, a corporation will probably call bonds it has previously
issued (provided bonds are callable). ANSWER : Declining Interest Rates
What is the lowest S&P rating that would be considered investment grade? -
REPLY BBB-
Which of the following organizations is liable for paying taxes on a treasury
bill? ANSWER : Increased marketability and liquidity
Zero-coupon bonds are held in a trust that you oversee. What should you do to
find the tax liability? ANSWER : Every year, report the annual accrual.
What will investors do if they anticipate an increase in interest rates?
ANSWER Duration Decrease
An ANSWER Revenue Bond Issue is a type of municipal bond issue that is
backed by the proceeds from a bridge or toll road.
Mutual fund dividend distributions are either qualifying dividends or ordinary
income, depending on the investor's status.
The capitalization of open-end and closed-end investment firms varies.
Investment firms are required to provide their shareholders with financial
statements on a semiannual basis.
ANSWER today's closing price is used to calculate the price an investor will
spend today to buy an open-end investment company.
According to the "conduit" idea, only the shareholder is responsible for paying
the taxes due on dividends and interest paid by a regulated investment business.
