alleryStart learning →FINRA Series 7 Investments — practice questions
Explore 22 free Investments questions in FINRA Series 7 Finance. Each question opens with answer choices, the correct answer and a worked solution.
Practise Investments with Quill →Investments MCQs with answers
Showing questions 1–22 of 22.
A bond certificate states the amount the issuer will repay at the end of the term. That stated amount is the:Read the answer and worked solution →A bond pays 6 percent on a 1,000 face value, giving 60 a year. The 6 percent figure is the:Read the answer and worked solution →An investor discounts every future payment back to today to value a bond. The rate used for that is the:Read the answer and worked solution →A bond's coupon rate is 4 percent while comparable yields are 6 percent. The bond will trade:Read the answer and worked solution →Another bond pays 8 percent while comparable yields are 6 percent. That bond will trade:Read the answer and worked solution →Interest rates in the market rise sharply. The prices of existing bonds will:Read the answer and worked solution →That relationship between a bond's price and its yield is described as:Read the answer and worked solution →Some corporate bonds make no periodic interest payments at all. Those are:Read the answer and worked solution →A company reserves the right to redeem its bonds before the maturity date. Such bonds are described as:Read the answer and worked solution →A bond rated BBB by S&P or Baa by Moody's or better is classed as:Read the answer and worked solution →A bond rated below that line pays more but carries more risk. It is called a high-yield or:Read the answer and worked solution →Those lower-rated bonds are the highest paying because they are also the highest:Read the answer and worked solution →Credit rating agencies cut Enron's bonds to junk status in 2001, showing that the rating system is:Read the answer and worked solution →Two bonds are identical except that one runs for thirty years and one for two. The longer bond carries more:Read the answer and worked solution →The danger that an issuer simply fails to pay what it owes is called:Read the answer and worked solution →A bond paying 50 a year with a face value of 1,000 has a coupon rate of:Read the answer and worked solution →A 1,000 par bond with a 7 percent coupon pays each year:Read the answer and worked solution →At maturity, the issuer of a plain bond hands the holder the final coupon and the:Read the answer and worked solution →An investor buying a zero-coupon bond makes money because it is purchased:Read the answer and worked solution →When a bond's coupon rate exactly equals its yield to maturity, the bond trades:Read the answer and worked solution →A rating agency's job is to give investors an indication of the likelihood of:Read the answer and worked solution →A company issues callable bonds and market rates then fall sharply. The issuer is likely to:Read the answer and worked solution →
How to practise
- Choose a Investments question and try to work out your answer.
- Open the question to check the correct answer and read its worked solution.
- Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.