SIE Exam Study Guide: Latest Updated Complete Solution

term issuance (Ans- all bonds are issued and mature on the same day, used by corporations and the US government types of quotes: price quotes, dollar quotes, % of par quotes, term quotes serial issuance (Ans- all bonds are issued on the same day, but mature on different days, used by municipalities types of quotes: yield quotes, basis quotes, serial quotes series issuance (Ans- bonds are issued on different days, but all mature on the same day, used for construction-related projects firm commitment underwritings (Ans- underwriter keeps unsold securities and is liable, riskier for underwriter - larger fees for underwriter*also known as principal or dealer transactions best effort commitment underwritings (Ans- issuer keeps unsold securities and is liable, riskier for issuer - smaller fees for underwriter types: mini-max commitments: minimum shares must be sold up to a maximum; all or none commitments: all shares must be sold *also known as agency transactions settlement of US government bond trades (Ans- occurs one business day after trade through the Federal Funds System settlement of municipal and corporate bond trades (Ans- occurs two business days after trade through the Clearing House system accrued interest (Ans- paid by the buyer to the seller for the time the seller held the bond from the last interest payment date, up to, but not including the settlement date30/360 method for accrued interest (Ans- assumes 30 days in each month "counted over", used for corporate and municipal bonds actual/365 method for accrued interest (Ans- counts actual days in each month, used for US government bonds