SIE Exam Lesson 6 Free Quiz: Fixed Income pt. 2 - a podcast by Franz

This is a SIE Exam Lesson 6 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over.
SIE Exam Lesson 6 Free QuizzThis is a SIE Exam Lesson 6 Free Quiz which is covering Fixed income. Try it and see how you do if you need help listen to the lesson over.

Questions covered include1. Which of the following is the correct set of government bills in order of increasing length in which they are set?
A. bills, notes, bondsB. notes, bonds, bills
C. bonds, notes, billsD. All of the above government bills have equal duration in which they are set.

2. Which of the following is NOT a US government sponsored entity?A. Fannie Mae
B. Freddie MacC. Ginnie Mae
D. Sallie Mac3. A call feature is a compulsory redemption of the bond at a specific price.
A. TrueB. False

4. A call protection period is _____.A. a period of time which protects the bond holder from an increase in the interest rate
B. a period of time which protects the bond holder from a decrease in the dividendC. a period of time which protects the bond holder from a call from the issuer
D. a period of time which protects the bond holder from a call from the transfer agent5. It is best to quote a bond to a client in the most conservative yield.
A. TrueB. False

6. It is the right of the bond holder to redeem the bond from the issuer on a specific date.A. call feature
B. put featureC. tending feature
D. refund feature7. US treasury bonds are quoted in ___.
A. eighthsB. sixteenths
C. thirty-secondsD. sixty-fourths

8. Corporate bonds are quoted in ___.A. eighths
B. sixteenthsC. thirty-seconds
D. sixty-fourths9. Bonds that trade flat are bonds without accrued interest.
A. TrueB. False

10. Which of the following is a bond that trade flat?A. defaulted bond
B. commercial paperC. zero coupon bond
D. all of the aboveSIE Exam Lesson 6 Free Quiz: Fixed Income pt. 2: Continued
11. A basis point is 10th of a percentage point.A. True
B. False12. In calculating the price of a serial bond, the following are needed EXCEPT ___.
A. call dateB. maturity date
C. settlement dateD. yield basis quote

13. In corporate bonds, in the event of dissolution, which of the following is the correct set of obligation in order of decreasing priority?A. preferred stockholders  secured creditors  debentures  unpaid wages, taxes, trade creditors
B. secured creditors  preferred stockholders  debentures  unpaid wages, taxes, trade creditorsC. secured creditors  unpaid wages, taxes, trade creditors  debentures  preferred stockholders
D. unpaid wages, taxes, trade creditors  debentures  secured creditors  preferred stockholders14. The Trust Indenture Act of 1939 includes which of the following?
A. the terms of the issuance of bondB. specific protections for the bondholders
C. important information for the full disclosure of the terms of that bond offeringD. all of the above

15. All of the following are secured debts EXCEPT ___.A. debentures
B. equipment trust certificatesC. mortgage bonds
D. All of the above are secured debts.16. Which of the following is NOT a characteristic of a commercial paper?
A. It is registered in the Securities and Exchange Commission.B. It is usually in very large denominations.
C. It is usually issued at a discount.D. Its maturity does not exceed 270 days.

17. It gives the bond holder the option of converting his debt in common stock at a set conversion ratio.A. collateral trust certificates
B. convertible corporate debtC. direct paper
D. income bonds18. Why would a bond be called by the issuer?
A. to convert the bond into common stockB. to exchange the bond for another bond
C. to make interest payments tax deductibleD. to put a ceiling price on the bond if the interest rates go down

19. When the bond and stock are trading at equivalent values and there's no theoretic...

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