If a municipality has funds available to make a partial call of an issue of outstanding serial bonds, which bonds should be called first?

A. the shortest maturity

B. the maturity with the largest number of bonds

C. the longest maturity

D. the maturity bearing the lowest interest rate

Big Easy Investment Banking, Inc., is participating in an Eastern account underwriting of $10 million of municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold but Big Easy has distributed $1.5

million of bonds.

What is the liability of Big Easy remaining in the account?

A. $0

B. $400,000

C. $600,000

D. $1,000,000

Bubba buys a 5% municipal bond maturing in 15 years that is trading at a market price of 85. What is the current yield?

A. 5.00%

B. 5.88%

C. 6.49%

D. 5.10%

The maximum contribution an employer may make to a SEP-IRA is:

A. $4,000

B. $5,000

C. 25% of employee compensation

D. 100% of employee compensation

Bubba held one XYZ July 30 listed call option when XYZ split 2 for 1. What is the resulting position, Bubba has on the Option Clearing Corporation's record?

A. long one XYZ July 30 call

B. long one XYZ July 30 call and short one XYZ July 30 call

C. long two XYZ July 30 calls

D. long two XYZ July 15 calls

After an extended period of backing and filling, a stock moves up sharply through a resistance level on heavy volume. A technical analyst would likely call this a:

A. buy-in

B. technical rally

C. buying climax

D. breakout

Which of the following clients could not open a margin account?

A. an uncovered option writer

B. a corporation

C. a husband and wife in a joint account

D. a custodian under UGMA

When pricing callable municipal bonds, the "price to call" is based upon which of the following?

A. in-whole calls

B. partial calls

C. sinking fund calls

D. catastrophe calls

Under which of the following conditions may a registered representative of a firm that is an underwriter of a new offering of common stock send to a client a copy of the firm's research report on that stock?

A. if it is accompanied by a red herring

B. if he has permission of his employer

C. if his firm is not the managing underwriter

D. under no circumstances

When a member firm buys or sells securities directly as principal with a public customer, it is acting as:

A. a dealer

B. a broker

C. an agent

D. none of the above