ACTUAL EXAM QUESTIONS WITH
CORRECT ANSWERS 100% VERIFIED
GRADED A+
1. Bondsmthatmcanmbemtradedmformstockmaremknownmasm-
mCORRECTmANSWERmConvertiblemBonds
2. Amcompanymmostmlikelymwillmcallmbondsm(assumingmbondsmaremcallable)mitmhadmpreviouslym
issuedmifmwhatmoccurs?m-mCORRECTmANSWERmInterestmRatesmFall
3. ThemLOWESTS&P'smratingmthatmwouldmqualifymasminvestmentmgrademismwhat?m-
mCORRECTmANSWERmBBB-
4. Amtreasurymbillmismtaxablembymwhichmofmthemfollowingmentities?m-
mCORRECTmANSWERmHighermliquiditymandmhighermmarketability
5. Yoummanagemamtrustmthatmholdsmzero-
couponmbonds.mTomdeterminemthemtaxmliability,myoumshouldmdomwhat?m-
mCORRECTmANSWERmReportmthemannualmaccrualmeachmyear.
6. Ifminvestorsmexpectminterestmratesmtomincreasemtheymwillmdomwhat?m-
mCORRECTmANSWERmDecreasemDuration
7. Ammunicipalmbondmissuemsecuredmbymthemincomemfrommambridgemormtollmroadmismcalledma:m-
mCORRECTmANSWERmRevenuemBondmIssue
8. Dividendmdistributionsmfrommmutualmfundsmare:m-
mCORRECTmANSWERmtaxablemasmordinarymincomemormqualifiedmdividendsmdependingmonms
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