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Finra Series-6 Exam - Topic 2 Question 107 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 107
Topic #: 2
[All Series-6 Questions]

A bond issued by the Needy Corporation pays an 8% coupon, matures in ten years, and is selling for its face value of $1,000. The yield-to-maturity on this bond is:

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Suggested Answer: C

Since the bond is selling for its face value, its yield-to-maturity is equal to its coupon rate.


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Cyndy
1 day ago
I still believe it could be less than 8%. Just a thought.
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Aleta
6 days ago
But what if interest rates change? Could that affect it?
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Elliot
11 days ago
I feel confident about option C. It’s straightforward.
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Noble
17 days ago
Yeah, since it's selling at face value, it makes sense.
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Audrie
22 days ago
I thought it could be less if interest rates rise?
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Eugene
27 days ago
Definitely C, no doubt about it!
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Helene
2 months ago
Wait, how can we be sure without more info?
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Jess
2 months ago
Totally agree, it's 8%!
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Delisa
2 months ago
It's selling at face value, so yield equals coupon rate.
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Agustin
2 months ago
I'm stumped. This question is as confusing as trying to understand bond pricing. Where's the "I have no idea" option?
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Shad
2 months ago
I'm going with B. Who wouldn't want a bond that pays more than 8%? Sign me up!
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Gianna
2 months ago
C is the right answer. If the bond is selling at its face value, the yield-to-maturity must be equal to the coupon rate.
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Hoa
3 months ago
D is the correct answer. We don't have enough information to determine the yield-to-maturity without knowing the current market price of the bond.
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Bambi
3 months ago
I’m a bit confused. I thought yield-to-maturity could be indeterminable sometimes, but this seems straightforward. I lean towards C, but I’m not 100% sure.
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Gearldine
3 months ago
I practiced a similar question where the bond was at a discount, and the yield was higher than the coupon rate. But here, since it's at face value, I think it should be C.
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Daniel
3 months ago
I'm not entirely sure, but I feel like if the bond is at face value, the yield-to-maturity could be less than the coupon rate. Maybe it's A?
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Larue
3 months ago
I remember that when a bond sells at face value, the yield-to-maturity is usually equal to the coupon rate. So, I think it might be C.
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Annett
3 months ago
I've got this! If the bond is selling at par, then the yield-to-maturity has to be equal to the coupon rate. The answer is C.
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Merrilee
4 months ago
Hmm, I'm not sure. The information provided doesn't seem complete. I might need to do some calculations to determine the yield-to-maturity. I'll have to think about this one.
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Stefania
4 months ago
I think the yield-to-maturity is equal to the coupon rate.
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Keva
4 months ago
I think the answer is B. The bond is selling at its face value, so the yield-to-maturity should be greater than the coupon rate.
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Marjory
4 months ago
Okay, let me think this through. The bond is paying an 8% coupon and is selling at its face value of $1,000. So the yield-to-maturity must be equal to the coupon rate of 8%. I'll go with C.
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Huey
5 months ago
I'm a bit confused. If the bond is selling at par, shouldn't the yield-to-maturity be less than the coupon rate?
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Jennie
5 months ago
Hmm, this seems straightforward. The bond is selling at par, so the yield-to-maturity should be equal to the coupon rate.
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Kasandra
4 months ago
Right, 8% is the yield-to-maturity here.
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