Securities Licensing Exam - Chapter 9

This was on municipalities...not nearly as infuriating as tbills and the financial markets. haha.

I got 10/15, which suggests I should have gone to bed earlier than I did. I do remember falling asleep a couple of times.

The questions I missed were 2, 3, 10, 12, 14.

Two of the questions (2,3) were on the nature of munis. They are generally tax exempt from federal. provided they are issued in the same municipality as the user, they are exempt from all 3. i thought they were not exempt from federal taxes.

industrial revenue and industrial development bonds I do not even remember reading about. special assessment bonds i missed b/c i said the municipality backed the bond w/ad valorem tax...b/c there were two answers about how the muni backed the bond, so i figured it had to be one of them...but the false statement was that they are a type of revenue bond. they are GO's and are backed by taxes.

Section 8 munis are backed by the federal government. HUD>I thought that no munis were backed by the Fed...but it is not the FED, it is HUD.

That's all...on to 10, which is really more municipalities.

Also, one of the questions I got right by guestimating which is #15. i just remembered in the example the lady had a 28% tax bracket and the bond was about 5% coupon and the answer to that was around 7%. i did not get this right because i knew the formula...to which i repeat myself, to study and memorize all of the ratio, ytm, adjusted cost rate, rates yields, etc.

Bye!