FINRA Investment Company and Variable Contracts Products Representative Examination (IR): FINRA-SERIES-6

A bond issued by the Needy Corporation pays an 8% coupon, matures in ten years, and is selling for its face value of $1,000. The yield-to-maturity on this bond is:

A. less than its coupon rate of 8%

B. greater than its coupon rate of 8%.

C. equal to its coupon rate of 8%.

D. indeterminable with the information provided.

Which of the following is a characteristic of a mutual fund?

A. shares may sell below net asset value

B. shares are bought and sold through the fund

C. shares are sold on exchange floors

D. the fund has a fixed number of shares that can be sold

Ralph has a traditional IRA from which he has yet to make any withdrawals. Ralph will be turning 70 ½ in June, 2011.According to the required minimum distribution rule associated with traditional IRAs, Ralph is required to start withdrawing funds from this account:

A. no later than the day after he turns 70 ½.

B. on April 15, 2011.

C. on April 1, 2012.

D. on April 15, 2012.