Series 7 Bonds and Debt Securities Practice Questions
F3 3.1–3.3 · Provides information, makes recommendations, transfers assets and keeps records · 91 of 125 scored questions across 6 topics
Ten Series 7 questions on corporate and government debt, untimed, with a worked answer after each one.
Or take the full Series 7 mock examA 7% corporate bond trades at 108 and is callable at par in five years. Using the approximate yield formula, what is the bond's yield to call, rounded to two decimal places?
Corporate and government debt on the Series 7
Debt securities are a large part of Function 3. You need bond pricing and yield relationships, accrued interest, convertible parity, the U.S. government and agency market, and CMOs.
- Outline
- F3 3.1–3.3: Corporate bonds, convertibles, Treasuries, agencies, mortgage-backed securities, money market instruments, yields and bond math
- Share of the exam
- F3 Provides information, makes recommendations, transfers assets and keeps records: 91 of 125 scored questions (73%)
- Our drill
- 10 questions from 50 on this topic, untimed, a worked answer after each; one free attempt, unlimited with a pass
What to know
- Price and yield move in opposite directions. For a discount bond: nominal yield < current yield < yield to maturity < yield to call; for a premium bond the order reverses.
- Current yield = annual interest ÷ market price. A 5% bond at 95 pays $50 on a $950 price: 5.26%.
- Conversion ratio = par ÷ conversion price; parity price of the stock = bond price ÷ conversion ratio.
- Corporate bond accrued interest uses a 30-day month and 360-day year, counted from the last coupon date up to but not including settlement.
- Treasury bills are issued at a discount; notes run 2 to 10 years and bonds 20 or 30 years; TIPS adjust principal for CPI-U inflation; STRIPS are zero-coupon.
- CMO tranches redistribute prepayment risk: PAC tranches have the most predictable cash flows and companion (support) tranches absorb the most prepayment and extension risk.
Test yourself on corporate and government debt
Ten Series 7 questions on corporate and government debt, untimed, with a worked answer after each one.
Or take the full Series 7 mock examCommon questions
How many corporate and government debt questions are on the Series 7?
Debt questions are part of Function 3 (91 of the 125 scored questions).
Are these real Series 7 questions?
No. FINRA and NASAA do not release exam questions. These are original practice questions written to the official content outline, with a worked explanation and the rule behind every answer.
More Series 7 topics
Outline and exam facts checked November 2026: FINRA: Series 7 exam · FINRA Series 7 Content Outline · FINRA Regulatory Notice 26-18.
Original independent practice questions written to the published FINRA content outline. Not affiliated with or endorsed by FINRA or NASAA.