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Series 7 candidates must apply suitability and Regulation Best Interest (Reg BI) care obligations when recommending products. For an older investor prioritizing income and capital preservation, a diversified ladder of investment-grade bonds (Option B) offers predictable cash flows, reduced reinvestment risk, and lower credit risk compared with speculative debt. By staggering maturities (e.g., 1, 3, 5, 7 years), the investor can reinvest maturing principal at prevailing rates and preserve liquidity. Option A concentrates credit risk and adds volatility inconsistent with principal preservation. Option C introduces leverage and equity market risk, mismatching the stated objective. Option D can provide income but entails illiquidity, valuation complexity, concentration risk, and distribution uncertainty—concerns for someone who may need access to funds. In implementing the recommendation, the rep must document the rationale, costs, and reasonable alternatives, disclose conflicts, and ensure ongoing recordkeeping. Suitability analysis incorporates the customer’s age, risk tolerance, time horizon, liquidity needs, tax status, and investment experience. A bond ladder of high-quality issuers aligns with conservative income goals while controlling for rate and credit risks.