SIE EXAMINATION TEST SCRIPT 2026
COMPLETE QUESTIONS AND CORRECT
ANSWERS
◉ Issuance of which of the following municipal issues are NOT
subject to statutory debt limits
Answer: Special tax bonds
Industrial Revenue Bonds
Moral Obligation bonds
COPS
(General Obligation are subject to debt limits)
◉ A corporation has issued bonds at 8%. Three years later similar
issues are being offered in the primary market at 7% which of the
following statements will be true about the current yield and the
nominal yield?
Answer: The current yield will be lower than the nominal yield. The
dollar price of the bond will be at a premium.
Nominal (stated) = .08
,Market price of bond = .08/.07 = 1,143
Current Yield = = .06999
◉ New issues of Government debt are issued in what form?
Fully registered
Fully registered to principal
Book entry
Mega super registered to a bro
Answer: Book entry
◉ All new corporate bonds are issued in what form?
Fully registered
Book entry
Mega man entry
Registered to principal
Answer: Book entry
◉ zero coupon bond
, Answer: a bond that makes no coupon payments and is thus initially
priced at a deep discount
◉ call premium
Answer: The call premium is an amount over the face value of the
security and is paid in the event that the security is redeemed before
the scheduled maturity date. Put another way, the call premium is
the difference between the call price of the bond and its stated par
value.
◉ Who rates commercial paper?
Answer: Moody's, Standard and Poor's, Fitch
NOT BEST's
BEST's DOESNT DO A THING
◉ Treasury notes and Bonds are registered in?
A) Bearer securities
B) Registered to interest only
C) Registered to principal only
D) Fully registered in book entry form
COMPLETE QUESTIONS AND CORRECT
ANSWERS
◉ Issuance of which of the following municipal issues are NOT
subject to statutory debt limits
Answer: Special tax bonds
Industrial Revenue Bonds
Moral Obligation bonds
COPS
(General Obligation are subject to debt limits)
◉ A corporation has issued bonds at 8%. Three years later similar
issues are being offered in the primary market at 7% which of the
following statements will be true about the current yield and the
nominal yield?
Answer: The current yield will be lower than the nominal yield. The
dollar price of the bond will be at a premium.
Nominal (stated) = .08
,Market price of bond = .08/.07 = 1,143
Current Yield = = .06999
◉ New issues of Government debt are issued in what form?
Fully registered
Fully registered to principal
Book entry
Mega super registered to a bro
Answer: Book entry
◉ All new corporate bonds are issued in what form?
Fully registered
Book entry
Mega man entry
Registered to principal
Answer: Book entry
◉ zero coupon bond
, Answer: a bond that makes no coupon payments and is thus initially
priced at a deep discount
◉ call premium
Answer: The call premium is an amount over the face value of the
security and is paid in the event that the security is redeemed before
the scheduled maturity date. Put another way, the call premium is
the difference between the call price of the bond and its stated par
value.
◉ Who rates commercial paper?
Answer: Moody's, Standard and Poor's, Fitch
NOT BEST's
BEST's DOESNT DO A THING
◉ Treasury notes and Bonds are registered in?
A) Bearer securities
B) Registered to interest only
C) Registered to principal only
D) Fully registered in book entry form
