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Key areas include bond and fixed-income concepts such as call features, LIBOR-linked variable rates, benchmark rates across Treasury instruments, basis point incentive examples, and duration and yield relationships. The material also covers promissory notes and underwriting mechanics including jump ball processes, free retention allocation, new issue pricing and trading practices, fairness opinions, and valuation via Economic Value Added (EVA).",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/series-79-top-off-trending-topics-bond-or-debt-concepts/393594/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/series-79-top-off-trending-topics-bond-or-debt-concepts/393594.png","ImageObject",300,407,{"name":92,"@type":93},"Sophia Brooks","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-28","2026-09-26",true,{"@type":102,"interactionType":103,"userInteractionCount":39},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"Why do issuers use a call feature on bonds?","Question",{"text":112,"@type":113},"A call feature benefits the issuer because it allows redemption before maturity, often when interest rates decline. If called, bondholders receive par value or a premium above par value.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How are benchmark rates determined for variable-rate and fixed-rate instruments?",{"text":117,"@type":113},"For variable-rate instruments, issuers commonly use LIBOR as the benchmark. For short-term fixed rate securities, the benchmark is Treasury bills, while longer-term fixed rate securities use Treasury notes or Treasury bonds.",{"name":119,"@type":110,"acceptedAnswer":120},"What are the key practices in new issue pricing and trading for the book-running lead manager?",{"text":121,"@type":113},"The book-running lead manager provides reports on indications of interest and final allocations, manages lock-up and transfer restrictions for officers and directors, and ensures returned shares are handled by offsetting a short position or using random allocation/specified secondary-market handling with charitable donation rules.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},393594,1790528321,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":39,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},962084925636,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","Investment Banking Representative Qualification  \nSeries 79 Top Off  \nTrending Topics ︱Crunch Time Facts  \nIncludes:  \nFact Sheet  \nKey Formulas sheet  \nv10  \nTRENDING TOPICS  \nBOND OR DEBT CONCEPTS  \nAlthough the majority of questions on bonds or fixed income securities are covered on the SIE Exam, some of the following basic concepts may also be tested on the Series 79 Exam.  \nA call feature on a bond is advantageous for the issuer since it allows the issuer to redeem the bond prior to its maturity. Issuers will most likely call bonds prior to maturity if interest rates are declining. If their bonds are called, bondholders will receive either par value or a premium above par value.  \nFor variable rate instruments, the rate that’s most commonly used by issuers as a benchmark to determine the rate at which they will pay interest to investors is the London Interbank Offered Rate (LIBOR) . For short-term, fixed rate securities, the benchmark rate is that of Treasury bills, while for longer term, fixed rate securities, the  \nbenchmark rate is that of Treasury notes or Treasury bonds.  \nIf an issuer is struggling to sell its debt securities due to lack of investor demand, the issuer could offer an incentive to investors by increasing the rate it’s currently paying to a larger spread above the comparable Treasury security (e.g., from 100 to 125 basis points) .  \nA bond with the longest maturity and the lowest coupon rate will have the greatest duration or interest rate risk.  \nSince the purchase price of a Treasury bill is less than its par value and it pays no annual interest, its bond  \nequivalent yield (BEY) is greater than its discount yield.  \nA CFO who ’s anticipating a declining interest rate environment, but wants to borrow funds for a long period, could issue bonds with a variable or floating rate coupon. A CFO who’s investing surplus funds in a rising interest rate environment will expect an increase in interest income.  \nPROMISSORY NOTES  \nPromissory notes are similar to other debt securities and, when defined as securities, they’re either subject to or exempt from SEC registration. One difference is that if a promissory note’s maturity doesn’t exceed 270 days (nine months), the SEC will typically not consider it to be a security.  \nUNDERWRITING CONCEPTS  \nA jump ball is a term that’s used to describe a process by which an underwriter sets aside shares for institutional clients and allows all member firms to compete for orders. The profit is then allocated based on each member firm’s sales. The institutions that receive allocations will generally designate the underwriters to whom the sales are credited.  \nThe free retention is a term that’s used to describe the amount of shares that an underwriter is allotted for placement to its own clients. Sales to the firm’s retail clients are often filled from this amount, with the profit from the sales going to the member firm that made the sale.  \nNEW ISSUE PRICING AND TRADING PRACTICES  \nThe lead underwriter is also referred to as the book-running manager. For regulatory purposes, if a syndicate has more than one lead underwriter, one of them will be considered the book-running lead manager. This firm is required toadhere to the following new issue pricing and trading practices:  \n􀂃 In order to provide transparency to issuers and their pricing committees, the book-running lead manager must provide reports on indications of interest and final allocations to the issuer’s pricing committee (if the issuer has no pricing committee, then to its board of directors):  \n‒ A report including the names of interested institutional investors and the potential number of shares indicated by each  \n‒ A report of the aggregate demand from retail investors  \n‒ After the settlement date, a report on the final allocations of shares to institutional investors and aggregate sales to retail investors  \n􀂃 Any lock-up agreements or other restrictions on the transfer of shares by officers and directors o","cbCaidmLMic0MatF","https://ap.wps.com/l/cbCaidmLMic0MatF","pdf",1603357,26,"English","# TRENDING TOPICS\n## BOND OR DEBT CONCEPTS\n## PROMISSORY NOTES\n## UNDERWRITING CONCEPTS\n## NEW ISSUE PRICING AND TRADING PRACTICES\n## FAIRNESS OPINIONS\n## VALUATION","[{\"question\":\"Why do issuers use a call feature on bonds?\",\"answer\":\"A call feature benefits the issuer because it allows redemption before maturity, often when interest rates decline. If called, bondholders receive par value or a premium above par value.\"},{\"question\":\"How are benchmark rates determined for variable-rate and fixed-rate instruments?\",\"answer\":\"For variable-rate instruments, issuers commonly use LIBOR as the benchmark. For short-term fixed rate securities, the benchmark is Treasury bills, while longer-term fixed rate securities use Treasury notes or Treasury bonds.\"},{\"question\":\"What are the key practices in new issue pricing and trading for the book-running lead manager?\",\"answer\":\"The book-running lead manager provides reports on indications of interest and final allocations, manages lock-up and transfer restrictions for officers and directors, and ensures returned shares are handled by offsetting a short position or using random allocation/specified secondary-market handling with charitable donation rules.\"}]","Series 79 Top Off - Trending Topics - Bond or Debt Concepts | PDF",1790390550,66]