Finra Series-7 Exam - Topic 3 Question 125 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 125
Topic #: 3

Bubba buys $100,000 of US Treasury 10 s of 31 on margin. If the current market price is 92.16, what is Bubba's minimum deposit requirement?

A$4,625

B$5,550

C$10,000

D$25,000

Show Suggested Answer

Suggested Answer: B

$5,500. The NYSE maintenance requirements on obligations of the US treasury vary depending upon the term of the instrument. For 20-year bonds, the requirement is 6% of the market value. Multiplying the market value of $92,500 by 6% equals $5,500.

by Francoise at May 03, 2026, 09:00 PM

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Tula

2 days ago

I calculated it based on the market price.

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Portia

7 days ago

Makes sense! But I still think A is safer.

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Rocco

12 days ago

Margin is usually 5.5% for Treasuries.

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Nydia

17 days ago

Why B?

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Rocco

23 days ago

I disagree, I lean towards B) $5,550.

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Tula

28 days ago

I feel like the answer is A) $4,625.

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Portia

1 month ago

I think it's about margin requirements.

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Nydia

1 month ago

This question is tricky!

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Antonio

1 month ago

Definitely leaning towards A, $4,625 is a solid guess.

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Gaynell

2 months ago

Wait, how can it be that low? Sounds off to me.

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Weldon

2 months ago

Gotta go with option B, $5,550 seems right.

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Shaquana

2 months ago

I think it's actually 10% for margin requirements.

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Arletta

2 months ago

Minimum deposit is usually 5% for Treasuries.

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Carylon

2 months ago

I thought the minimum deposit was usually 10% of the purchase price, but I need to double-check how that applies to Treasury bonds specifically.

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Lashaunda

4 months ago

I feel like the answer might be $5,550, but I can't recall how to calculate the market value correctly.

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Thaddeus

4 months ago

I remember practicing a similar question where we had to calculate the margin requirement. I think it was around 5% for bonds, but I could be wrong.

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James

4 months ago

I think the minimum deposit requirement is based on the margin percentage, but I'm not sure what that is for Treasury bonds.

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