Series 7 Exam Question 202: Answer and Explanation

Question: 202

The Municipal Bond Index is

• A. the average yield on 25 revenue bonds with 30-year maturities
• B. the average yield on 20 selected municipal bonds with 20-year maturities
• C. the average dollar price of 40 highly traded GO and revenue bonds
• D. the average yield on 11 selected municipal bonds with 20-year maturities

Correct Answer: C

Explanation:

C. The Municipal Bond Index is the average dollar price of 40 highly traded GO and revenue bonds with an average maturity of 20 years and a rating of "A" or better.