# Blog

## Refinance Payment Calculation

Evan refinanced his home mortgage to a 30-year fixed mortgage with monthly payments. How much is each payment if he owed \$250,000 at the time of the refinance and the interest rate is 7%? \$891 \$1,211 \$1,459 \$1,663 CLICK TO REVEAL ANSWER Expand D is the answer. Evan pays his mortgage every month which means…

## CFP Board Research Reveals Millenials’ Top Life Goal

CFP® Board Updates A recent research report by the CFP Board shows “Financial Independence” is the #1 priority of millennials. The survey found 46% of individuals born between 1981 and 1996 cite financial independence or stability is their top life goal. Travel, a healthy and long retirement, career fulfillment, and developing lasting relationships were other…

## Understanding the Relationship Between Coupon Rates and Duration

Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: There is a question regarding duration that I continue to struggle with. Which of the following are true:1-Lower coupon bonds are more sensitive to interest rates than high coupon bonds.2-There is inverse relationship between bond prices and change in interest rates.3-There is a positive relationship between coupon rates…

## Calculating Realized Compound Yield on a Bond

An investor bought a bond at par that matures in 15 years. The bond pays an annual coupon of \$130 and the reinvestment rate is 9%. What is the realized compound yield of this bond? 10.21% 11.48% 13.00% 14.10% CLICK TO REVEAL ANSWER Expand A is the answer. One would anticipate a realized compound yield…

## National Debt: Fiscal Tsunami or Ripple?

Good to Know This blog article is the first in a three-part series, including: Federal agency perspectives, Private sector perspectives, and Summary comparison. “The growing [national] debt could create additional challenges for federal fiscal management, which could in turn cause challenges for American households and individuals, too. These potential challenges include: Risks to economic growth…

## Social Security Retirement Benefits

Course: Insurance PlanningLesson 10: Social Security Student Question: This question (below) doesn’t quite make sense to me.  Could you clarify why the correct answer is D? Robin Elizabeth qualifies for a retirement benefit of \$250 and a spouse’s benefit of \$400. At her full retirement age, she will receive which of the following? Instructor Response: Great…

## Tax Saving Strategies

Dan and Karen Burles have 2 children, Coy (age 12, student) and Roger (age 21, student). Dan and Karen own a security equipment sales and installation business, an LLC. Dan and Karen are in the highest income tax bracket. They have a portfolio with \$130,000 of municipal bonds (annual income \$5,200), \$80,000 of corporate bonds…