Series 7 Exam Question 390: Answer and Explanation

Question: 390

All of the following are included on a confirmation for non-callable municipal bonds that were purchased on a yield basis EXCEPT

• A. the purchase price
• B. the par value
• C. the yield to maturity
• D. the taxable equivalent yield

Correct Answer: D

Explanation:

D. Remember that an "except" question is looking for a false answer. The correct answer is Choice (D). Taxable equivalent yields cannot be shown because every investor has a unique tax issue and bracket.