Series 7 Exam Question 43: Answer and Explanation

Question: 43

Which of the following Bond Buyer indexes measures the average price of a group of bonds instead of the average yield?

• A. Municipal Bond Index
• B. Bond Buyer Index
• C. Revenue Bond Index
• D. 11 Bond Index

Correct Answer: A

Explanation:

A. The Municipal Bond Index (40 Bond Index) measures 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.