Finra Exam Series-7 Topic 2 Question 78 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 78
Topic #: 2

What rate of return takes into consideration appreciation or depreciation in market value relating to the par value of a debt security?

Acurrent yield

Byield to maturity

Cnominal yield

Dbasis yield

Show Suggested Answer

Suggested Answer: D

a fundamental analyst. These analysts are guided by computations about a company's performance using data in annual reports.

by Benton at Dec 10, 2023, 12:04 AM

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Mollie

2 months ago

Yield to maturity, easy peasy. Although, what's the point of even owning bonds these days? Might as well just invest in cat memes.

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Marsha

2 days ago

C) nominal yield

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Curt

18 days ago

A) current yield

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Elvis

19 days ago

I prefer yield to maturity too. Bonds are still a good way to diversify your portfolio.

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Dean

21 days ago

D) basis yield

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Pura

22 days ago

C) nominal yield

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Mona

23 days ago

B) yield to maturity

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Augustine

24 days ago

A) current yield

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Kristine

25 days ago

A) current yield

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Lourdes

25 days ago

B) yield to maturity

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Arthur

28 days ago

I prefer yield to maturity too. Bonds are still a good way to diversify your portfolio.

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Brande

29 days ago

D) basis yield

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Ciara

1 months ago

C) nominal yield

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Ronald

1 months ago

A) current yield

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Denae

1 months ago

B) yield to maturity

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Maira

1 months ago

A) current yield

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Kati

2 months ago

I'm not sure, but I think it could also be D) basis yield. It takes into account the difference between the purchase price and the par value.

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Yuriko

2 months ago

Ugh, I hate questions about bond yields. They're so confusing! But I'm pretty sure yield to maturity is the right answer here.

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Lorita

2 months ago

I agree with Silvana. Yield to maturity considers both interest payments and changes in market value.

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Jenelle

2 months ago

Yield to maturity, for sure. This is a classic question they love to ask on these exams.

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Silvana

2 months ago

I think the answer is B) yield to maturity.

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Gearldine

2 months ago

Hmm, this one's tricky. I think yield to maturity is the answer since it takes into account the changes in market value.

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Jennie

2 months ago

I'm not sure, but I think it might be A) current yield.

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Tashia

2 months ago

I agree with Bernardine, because yield to maturity factors in market value changes.

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Bernardine

2 months ago

I think the answer is B) yield to maturity.

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