Online Access Free SIE Practice Test

Company XYZ has issued bonds that carry a coupon rate of 4% and are yielding 9%. Other bonds with similar maturities issued by corporations in the same industry as XYZ are yielding approximately 5%. Which of the following statements is most likely to be true of the pricing and credit quality of XYZ's bonds?

• A.The bonds are trading at a discount due to their comparatively low credit quality.
• B.The bonds are trading at a premium due to their comparatively low credit quality.
• C.The bonds are trading at a premium due to their comparatively high credit quality.
• D.The bonds are trading at a discount due to their comparatively high credit quality.

How long are unused funds permitted to remain in a Coverdell education savings account?

• A.All funds must be distributed when the beneficiary's age reaches 21 years old.
• B.There is no age limit preventing funds from remaining in a beneficiary's account.
• C.All funds must be distributed when the beneficiary's age reaches 59 ½ years old.
• D.All funds must be distributed when the beneficiary's age reaches 30 years old.

A customer holds 1,000 shares of Company XYZ and wants to sell covered calls against this position. What is the maximum number of contracts that the customer could sell and still remain covered?

• A.10 contracts
• B.5 contracts
• C.1,000 contracts
• D.100 contracts

A broker-dealer (BD) creates a marketing postcard that includes a statement regarding FINRA ' s endorsement of the BD. Which of the following responses is true?

• A.The statement is permissible if the statement is approved in writing by FINRA prior to use.
• B.The statement is permissible if the postcard does not discuss specific investment opportunities.
• C.The statement is permissible if a principal of the BD approves it in writing prior to use.
• D.The statement regarding FINRA ' s endorsement is not permissible.

Which of the following account types should two people use if they want to maintain control over their portion of the investment without needing the other owner ' s consent?

• A.Joint tenants with right of survivorship (JTWROS)
• B.Tenants in common
• C.Trust
• D.Tenants by the entirety