Series 51: Arbitrage Bond

Taken from our Series 51 - MSRB Municipal Fund Securities Limited Principal Qualification Exam

Definition of the term Arbitrage Bond...

a municipal bond issue that is created to get better interest rates that those on an outstanding issue. An arbitrage bond claims federal tax advantages at issue, but is found to violate federal arbitrage regulations. The interest payments on arbitrage bonds become retroactively taxable. However, the issuer and/or related parties may make payments to the IRS to avoid the having the interest payments taxed.

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I loved the online testing for the Series 51! I felt like the questions were trickier so it really prepared me for the real exam.

Katrina Jackson, Cambridge Investment Research, Fairfield, IA

Thank you so much for the easy reading! I passed the 51 on my first attempt!!

Amber Carrick, Keystone Financial Management, Bath, PA

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Margaret Chen, PFS Investment, Duluth, GA

Using Solomon was very helpful. The exam simulator tests were great, but I should have spent a little more time re-reading the chapters. Passed (Series 51) on my first try.

Kelli Lanino, Raymond James Financial Riverhead, NY

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Jason Smith, Primerica, Duluth, GA