Series 6 practice questions, page 4 of 13, with answer review and explanations.
Question 16
Connie Serve placed an order to purchase five, $1,000 Treasury bonds in the secondary market on Tuesday, October 12th. Connie will be required to pay for this purchase on which day?
Tuesday, October 12th.
Wednesday, October 13th.
Thursday, October 14th.
Friday, October 15th.
Question 17
On Monday, August 2nd, the Board of Directors of Baldor Electric (BEZ) announced that the firm would pay a dividend of $0.17 a share. Payment will be made on Friday, October 8th to shareholders of record as of Friday, September 17th. In order to receive this dividend check, an investor would have to purchase shares of Baldor Electric before which day?
Monday, August 2nd.
Wednesday, September 15th.
Friday, September 17th.
Friday, October 8th.
Question 18
On Friday, August 6th, the Board of Directors of Ecolab (ECI) announced that it would pay a dividend of $0.155 a share to shareholders of record as of Tuesday, September 21st.The dividend checks were scheduled to be mailed on Friday, October 15th. In this scenario, the ex-dividend date is:
Friday, August 6th.
Friday, September 17th.
Tuesday, September 21st.
none of the above.
Question 19
On Friday, August 6th, the Board of Directors of Ecolab (ECI) announced that it would pay a dividend of $0.155 a share to shareholders of record as of Tuesday, September 21st.The dividend checks were scheduled to be mailed on Friday, October 15th. In this scenario, the payment date is:
Friday, August 6th.
Friday, September 17th.
Tuesday, September 21st.
none of the above.
Question 20
Given the same maturity, which of the following debt instruments would you expect to offer the highest yield-to-maturity?
a debenture issued by Abbott Laboratories
a bond issued by the Federal Home Loan Bank Board
a general obligation bond issued by the state of Massachusetts