Finra Series-7 Exam - Topic 5 Question 102 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 102
Topic #: 5

[All Series-7 Questions]

An offering price of 102 plus accrued interest applies to which of the following securities?

Atreasury bills

Bcertificates of deposit

Ccommercial paper

Dbanker's acceptances

Show Suggested Answer

Suggested Answer: D

a fundamental analyst. These analysts are guided by computations about a company's performance using data in annual reports.

by Mindy at Oct 19, 2024, 05:28 AM

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Pilar

4 months ago

I agree, it's banker's acceptances for sure!

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Sena

4 months ago

Wait, are we sure about that? Sounds off.

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Carin

4 months ago

102 plus accrued interest is standard for CDs, right?

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Jina

5 months ago

I thought it was for treasury bills?

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Markus

5 months ago

That's definitely for banker's acceptances!

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Kerrie

5 months ago

I’m leaning towards certificates of deposit, but I’m not entirely confident. I need to double-check my notes on that.

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Rusty

5 months ago

I feel like we had a practice question about this, and I think it was about banker's acceptances, but I can't recall the details.

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Darci

5 months ago

I remember studying that treasury bills are sold at a discount and don’t have accrued interest, so it can't be A.

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Bettina

5 months ago

I think the offering price of 102 plus accrued interest is related to bonds, but I'm not sure which one specifically.

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Sheron

5 months ago

I think the key here is understanding which of these securities typically trade at a price above par value. That should help me narrow it down.

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Willow

5 months ago

I'm a bit confused on the difference between certificates of deposit, commercial paper, and banker's acceptances. I'll need to review those concepts.

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Bernardo

5 months ago

Treasury bills are short-term government securities, so that doesn't seem right. I'm leaning towards one of the other options.

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Glory

5 months ago

Okay, I know an offering price of 102 plus accrued interest is typical for bonds, but which of these securities would that apply to?

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Ammie

6 months ago

Hmm, this looks like a question about fixed-income securities. I'll need to think carefully about the characteristics of each option.

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Glynda

10 months ago

Haha, this question is as clear as mud. Maybe the exam writers are just trying to trip us up!

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Raylene

9 months ago

C) commercial paper

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Gracia

9 months ago

B) certificates of deposit

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Glory

10 months ago

A) treasury bills

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Colette

10 months ago

This is a tricky one. I'm going to have to do some more research on the pricing conventions for different fixed-income instruments.

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Nicholle

9 months ago

D) banker's acceptances

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Lizbeth

9 months ago

C) commercial paper

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Alison

9 months ago

B) certificates of deposit

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Han

9 months ago

A) treasury bills

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Tennie

11 months ago

Hmm, I thought that only applied to bonds, not short-term securities like CDs or commercial paper.

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Bo

10 months ago

D) banker's acceptances

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Eun

10 months ago

C) commercial paper

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Marilynn

10 months ago

B) certificates of deposit

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Talia

10 months ago

A) treasury bills

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Cherry

11 months ago

I'm pretty sure it's Treasury bills, since they're often quoted at a discount to par value.

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Brock

10 months ago

D) banker's acceptances

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Marguerita

11 months ago

That's correct! Treasury bills are often quoted at a discount to par value.

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Alica

11 months ago

A) treasury bills

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Elli

11 months ago

I'm not sure, but I think it might be C) commercial paper because it is also a short-term debt instrument like treasury bills.

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Lai

12 months ago

I agree with Gaynell, because treasury bills are typically sold at a discount and the offering price includes accrued interest.

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Gaynell

12 months ago

I think it's A) treasury bills.

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