Pricing of Municipal Securities - Series 7 Exam Prep

Pricing of municipal securities sits inside the Series 7's debt securities content, where municipal questions are a major share of the exam's 125 scored questions. In this 8-minute explainer we work through the two quoting conventions for term and serial bonds, the accrued interest formula and direction of payment, and the 30/360 day count convention, so the math holds up when a settlement question shows up on test day. By the end of this video you'll be able to confidently answer Series 7 questions about: • Why term bonds are quoted on a dollar price basis as a percentage of par, and why serial bonds are quoted on a yield or basis (yield to maturity) basis • How to convert a dollar price quote like 98 or 102 into actual dollars per $1,000 face value • Who pays accrued interest at settlement: the buyer pays the seller, and why the buyer is reimbursed when the next full coupon arrives • The accrued interest formula: annual coupon divided by 360, multiplied by days from the last coupon up to but not including settlement • Why municipal and corporate bonds use the 30/360 day count convention while U.S. Treasury securities use actual/actual • Why February has 30 days under 30/360, and why March 1 to August 1 is exactly 150 days regardless of the real calendar • How short and long odd first coupons still use the 30/360 convention even when the first payment window is irregular 📚 Free written study guide, flashcards, and adaptive practice quizzes for this section (no signup wall to read): https://app.certfuel.com/series7/lear... 🎯 Try CertFuel free for the full Series 7 adaptive study experience: https://www.certfuel.com/series-7/?ut... ▶️ CHAPTERS 0:00 The February 30-day trap that catches test takers 1:20 Term bonds use dollar price, serial bonds use basis 2:41 Accrued interest and the half-eaten pizza analogy 4:12 The 30/360 day count and why munis ignore the calendar 5:33 Short and long odd first coupons 6:21 Rapid-fire exam recap About this series: Each Series 7 explainer covers one section of FINRA's General Securities Representative Examination. The full Series 7 has 125 scored questions and runs 225 minutes at Prometric, qualifying candidates to sell a broad range of securities products including municipal bonds, corporate debt, equities, options, and packaged products. CertFuel breaks the exam into short units so you can study in focused blocks and track your readiness to the 72% passing threshold. #Series7 #Series7Exam #Series7ExamPrep #FINRA #MunicipalBonds #AccruedInterest #DayCount #MuniPricing #SecuritiesExam