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Finra Exam Series-7 Topic 7 Question 3 Discussion
Actual exam question for
Finra's
Series-7 exam
Question #: 3
Topic #: 7
[All Series-7 Questions]
Topic #: 7
Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?
Suggested Answer:
B
98.96. A calculator is not required for this. Even Bubba knows the bond is obviously trading at a slight discount by yielding 5.10% instead of the coupon rate of 5%. If the yield was the same as the coupon rate, the price is 100.00.
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