Finra Exam Series-7 Topic 5 Question 92 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 92
Topic #: 5

What is the term applied to a classification of CMO securities having a stated maturity, average life, and estimated yield?

Atranche

Btier

Cbracket

Dbucket

Show Suggested Answer

Suggested Answer: C

it is unchanged. The debentures add to liabilities and to cash (an asset) received from the sale. There is no effect on net worth.

by Ardella at Jul 11, 2024, 05:32 PM

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Truman

12 days ago

Ah, the age-old question: tranche, tier, bracket, or bucket? I'm going with tranche, because it just sounds more professional than 'bucket of bonds'.

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Denna

13 days ago

Tranche, without a doubt. Though I have to say, 'bucket' would have been a more fun answer. Who doesn't love a good bucket of CMOs?

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Elly

19 days ago

Tranche, for sure. I can almost picture the bond certificates with that label. Definitely the correct answer here.

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Blondell

21 days ago

Hmm, let me think... Ah, I got it! It's 'tranche'. Gotta love those structured finance terms, they're like a secret language.

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Estrella

1 months ago

Tranche, that's the one! I remember learning about those tranches in my CMO studies. Sounds fancy, right?

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Phil

2 days ago

Tranches help investors understand the maturity, average life, and yield of CMO securities.

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Alyce

8 days ago

It does sound fancy, but it's important to understand in CMO studies.

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Denna

18 days ago

Yes, tranche is the term used for that classification.

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Michael

2 months ago

I'm not sure, but I think it could also be tier because it relates to levels of securities.

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Bong

2 months ago

I agree with Theron, tranche makes sense for that classification.

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Theron

2 months ago

I think the term is tranche.

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