Finra Exam Series-7 Topic 4 Question 77 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 77
Topic #: 4

Although a corporation has no earnings in a particular year, it is obligated to pay interest on all its outstanding debt except the following:

Aconvertible subordinated debentures

Bcollateral trust bonds

Cadjustment bonds

Dequipment trust certificates

Show Suggested Answer

Suggested Answer: D

predictions of recession in the economy. All of the other choices are technical market indicators. An economic forecast is ''fundamental'' market data.

by Deonna at Nov 24, 2023, 02:17 AM

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Therese

2 months ago

Wait, there's no option for 'all of the above'? That's usually the right answer in these types of exams!

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Herminia

10 days ago

I'll go with option C) adjustment bonds.

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Son

13 days ago

Yeah, it seems like we have to choose the specific type of debt that does not require interest payment.

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Queenie

15 days ago

I think 'all of the above' is not an option in this case.

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Martina

29 days ago

D) equipment trust certificates

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Cristal

1 months ago

C) adjustment bonds

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Casey

1 months ago

B) collateral trust bonds

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Jerilyn

1 months ago

A) convertible subordinated debentures

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Ariel

2 months ago

Haha, I bet the finance team at the company is really hoping their equipment trust certificates are the answer. Gotta love those loopholes!

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Lottie

4 days ago

D) equipment trust certificates

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Francine

1 months ago

C) adjustment bonds

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Meghan

2 months ago

B) collateral trust bonds

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Carlee

2 months ago

A) convertible subordinated debentures

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Lavera

2 months ago

Ah, this is a tricky one. I think the answer might be A. Convertible subordinated debentures have a different set of rules when it comes to interest payments.

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Diane

2 months ago

I'm leaning towards B. Collateral trust bonds seem like the most logical exception here.

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Freida

17 days ago

Yes, I think B is the correct answer.

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Corazon

19 days ago

I agree, B does seem like the most logical exception.

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Nana

20 days ago

D) equipment trust certificates

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Delila

23 days ago

C) adjustment bonds

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Paulina

24 days ago

B) collateral trust bonds

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Miesha

26 days ago

A) convertible subordinated debentures

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Chantell

28 days ago

Yes, collateral trust bonds are typically secured by assets, so it makes sense that they wouldn't require interest payments in a year with no earnings.

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