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Series 7: Securities Trading and Financial Regulations - Bonds Focus

Series 7: Securities Trading And Financial Regulations - Bonds Focus

This assessment focuses on Series 7 material covering Chapters 5 and 6, designed to test knowledge in securities trading and financial regulations. It evaluates critical competencies essential for finance professionals, enhancing...

Questions: 30 | Attempts: 13 | Last updated: Oct 22, 2025

Sample Question 1
What is a bond?

A type of insurance policy that protects against financial loss.

A type of stock that represents ownership in a company.

1.Contract b/w issuer and investor --Investor lends money to issuer and thus, becomes a creditor. Issuer, who can be the gov't or a private business, promises to pay the money back when it matures along with interest (coupon rate).

A financial instrument used to measure the performance of a group of assets.

Sample Question 2
What are bearer bonds?

1.Bearer-Does not have the name of the owner recorded either on the bond or on the books of the issuer. The bond has interest coupons attached. When payment is due, holder clips off the appropriate coupon and deposits it in a bank. NO LONGER ISSUED IN U.S.

3. Coupon-Refers to the interest payments made to bondholders. These payments are typically made semi-annually or annually.

4. Convertible-Allows the bondholder to convert the bond into a specified number of shares of the company's common stock.

2. Registered-Has the owner's name recorded on the bond or on the books of the issuer. Interest is paid directly to the owner.

Sample Question 3
What are the different types of bond terms?

2. Partially Registered Bonds where principal is held by the issuer

1.Registered as to principal only will have the owner's name/address. Payments are received by means of attached interest coupons 2.Fully Registered-Payments are received by means of a check from the issuer every six months 3.Book entry form-Becoming quite common. No phyiscal bond issued. Done by computer. All negotiable U.S. Treasury/gov't agency debt is issued in book entry form.

3. Hybrid Registered Bonds with payment options via online portal

1. Non-Registered Bonds with annual interest coupon mailings