Series 7 Exam Question 230: Answer and Explanation

Question: 230

All of the following items would be found on the official statement of a municipal bond issue EXCEPT

• A. the markup
• B. a description of the issuer
• C. the coupon rate
• D. a legal opinion

Correct Answer: A

Explanation:

A. The official statement for a municipal bond issue is similar to a prospectus for a corporate issue. The items that you find on an official statement include the offering terms, the underwriting spread, a description of the bonds, a description of the issuer, the offering price, the coupon rate, the feasibility statement, and the legal opinion.