Question #s7-prep3-s7-q-413Function 3Fundamental

Government Bonds

A Treasury note is quoted at 98-24. What is the price as a percentage of par value?

Correct Choice: C

Treasury quotes: divide the number after the dash by 32.

Complete Analysis & Legal Rationale

Treasury notes are quoted in 32nds. The quote 98-24 means 98 and 24/32 = 98 + 0.75 = 98.75% of par value. To convert: 24/32 = 0.75. For a $1,000 par bond, the price would be $987.50.

Distractor Autopsy (Why Other Options Are Traps)

FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:

Choice AIncorrect

Concept Trap

Does not match the governing concept in the explanation.

Choice BIncorrect

Concept Trap

Does not match the governing concept in the explanation.

Choice CCorrect

None

Matches the verified teaching point in the explanation.

Choice DIncorrect

Concept Trap

Does not match the governing concept in the explanation.

Authorities & References:

Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.

Official SourceFINRA FINRA Series 7 Content Outline — General Securities Representative Examination (Series 7) Content Outline

Government Bonds

Complete Analysis & Legal Rationale

Distractor Autopsy (Why Other Options Are Traps)

Regulatory Authority & Citations: Primary Legal Sources

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