Ace the SIE Exam 2025 – Unlock Your Finance Future with Essentials!

Question: 1 / 400

Regular way settlement on corporate bonds is:

same day

next business day

second business day (skip day)

Choices A, B, and D are all incorrect because the regular way settlement for corporate bonds is generally two business days after the trade date, otherwise known as "T+2." This is the standard timeframe for most securities and is important to note because it affects the timing for receiving or delivering the bonds and any associated interest payments. Option A, same day settlement, is incorrect because it is too soon to allow for processing of the trade. Option B, next business day settlement, is incorrect because it is also too soon and would not allow for proper settlement. Option D, third business day settlement, is incorrect because it is too late and could cause delays or disruptions in the settlement process. Overall, it is important to be aware of the different settlement timelines for different types of securities to ensure accurate and timely transactions.

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third business day

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