Series 52: Chapter 3 Practice Questions

Taken from our Series 52 Top Off Online Guide

Chapter 3 Practice Questions

  1. 1. A bond has a face value of $1,000. The manager’s fee is 1/10 of a bond point. What is the dollar value of the manager’s fee?
  2. A. $.10
  3. B. $1.00
  4. C. $10.00
  5. D. $100.00
  6. 2. The spread in a municipal underwriting is equal to:
  7. A. The manager’s fee plus the total takedown
  8. B. The manager’s fee plus the additional takedown
  9. C. The additional takedown plus the concession fee
  10. D. The total takedown plus the additional takedown
  11. 3. An issue is allotted among five underwriters, with each underwriter receiving a fifth of the issue. Members A and B sell their full allotments, Members C and D each sell half their allotments, and Member E sells three-quarters of its allotment. If the syndicate uses an Eastern account, what is Member C’s remaining liability?
  12. A. 5% of the issue
  13. B. 10% of the issue
  14. C. 20% of the issue
  15. D. 40% of the issue
  16. 4. Which of the following would be required in the preliminary official statement for a municipal GO bond?
  17. A. The maturity structure
  18. B. The offering price
  19. C. The interest rates
  20. D. The selling compensation
  21. 5. Underwriters of municipal bonds must give prospective customers a preliminary official statement:
  22. A. At or before the time of any sale
  23. B. At least one business day prior to any sale
  24. C. No later than one business day after any sale
  25. D. Within one business day of any customer request
  26. 6. The order period for a municipal bond offering may last:
  27. A. 1 hour to 24 hours
  28. B. 1 hour to 5 days
  29. C. 1 day to 5 days
  30. D. 1 day to 10 days
  31. 7. Underwriters of municipal bonds must provide the MSRB with copies of any amendments to the official statement:
  32. A. On an ongoing basis
  33. B. Until the settlement of the underwriting
  34. C. Until the 25th day after the settlement of the underwriting
  35. D. Until th

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