NACVA Exam CVA Topic 1 Question 89 Discussion

Actual exam question for NACVA's CVA exam

Question #: 89
Topic #: 1

[All CVA Questions]

The discount rate is a market-driven rate. It represents the expected yield rate-or rate of return-necessary to induce:

AInvestors to commit available funds to the subject investment, given its level of risk

BYield rate

CDividends

DInvestment yield

Show Suggested Answer

Suggested Answer: C

by Eleonore at Jun 23, 2024, 04:57 PM

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Galen

24 days ago

The discount rate? More like the 'discourage me from investing' rate, am I right? Let's just go with A and call it a day.

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Elouise

1 months ago

Wait, is the discount rate the same as the 'rate of return'? I'm going to have to consult my magic 8-ball on this one.

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Cassandra

13 days ago

B) Yield rate

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Karima

20 days ago

A) Investors to commit available funds to the subject investment, given its level of risk

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Jesusita

1 months ago

Ah, the old 'rate of return' trick question. A is definitely the way to go here. Discount rate 101, folks!

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Brett

5 days ago

I think A makes the most sense. It's about the expected yield rate needed to entice investors.

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Malika

26 days ago

Definitely, the discount rate is crucial for attracting investors. A is the way to go.

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Stefania

28 days ago

I agree, A is the correct answer. It's all about inducing investors to commit funds.

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Charlena

1 months ago

I'm not sure, but I think it's related to the expected yield rate. So maybe B) Yield rate could also be a possible answer.

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Ailene

1 months ago

I agree with Alise. The discount rate needs to be high enough to attract investors to take on the risk of the investment.

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Nidia

2 months ago

Hmm, I'm not sure if B, C, or D are just synonyms for the discount rate. I'll have to think this one through carefully.

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Deane

14 days ago

Hmm, I think option A is the correct answer. It makes sense that the discount rate would be based on the expected yield rate needed to attract investors based on the level of risk.

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Floyd

16 days ago

A) Investors to commit available funds to the subject investment, given its level of risk

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Lon

2 months ago

The discount rate represents the expected yield rate necessary to attract investors, so A is the correct answer. Easy peasy!

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Tori

14 days ago

I agree, the discount rate is all about getting investors to commit funds to the investment.

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Corrie

1 months ago

I think A is the correct answer because the discount rate is what attracts investors.

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Alise

2 months ago

I think the answer is A) Investors to commit available funds to the subject investment, given its level of risk.

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