Day before Test

Question 1

Don’t forget this little trick about bond payouts on maturity….

If your customer holds ten KLP 6% bonds, how much money will he receive in total at the debenture's maturity?
A)
$10,000.
B)
$10,300.
C)
$10,200.
D)
$10,600.

Answer 1

Explanation
The holder of 10 bonds will receive $10,000 in principal at maturity. Each bond pays 6% annual interest, or $60. Thus, ten bonds pay a total of $600 per year in two semiannual payments of $300. At maturity, the bondholder will receive the $10,000 face amount plus the final semiannual payment ($10,000 + $300 = $10,300).

Question 2

is there an income level for 529s?

Answer 2

no,
Unlike Coverdell ESAs, the income level of the contributor will not affect annual contributions under a Section 529 plan.

Question 3

FINRA allows sales charges up to a maximum of:

Answer 3

The maximum allowable sales charge for
mutual funds is 8.5%.
Contractual plans are 9%. (set payments into Mutual funds over time.)
variable annuities: no maximum sales charge.