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Interest Rate Risk in a Bond
Course: Investment PlanningLesson 10: Fixed Income Securities Analysis Student Question: Hi- I’m not clear why holders of long-term bonds are subject to interest rate risk. If a 20-year bond is purchased at par with a coupon rate of 6.25% ($62.50/year), it seems to me that the investor would still receive $62.50 a year regardless of interest rate…
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Characteristics of a Will
Which of the following statements concerning a Will are correct? (1) A will can be altered, amended, or completely rewritten at any time before a person’s death. (2) A will cannot be rewritten but can be amended at any time by a codicil. (3) A will must be signed by the maker and usually must…
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CELEBRATING BLACK HISTORY MONTH
CFP® Certificants in the News CFP BOARD encourages CFP® certificants and candidates to attend a Feb. 24 televised event featuring CFP Board Chair Kamila Elliot, CFP®. Here’s the invitation-“Join CFP Board Chair Kamila Elliott, CFP® during CNBC’s special Financial Faces of Change LinkedIn Live event on February 24 at 1:00 p.m. (Eastern). To celebrate Black History during February,…
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Internal Rate of Return Calculation
Course: Fundamentals of Financial PlanningLesson 5b: Using the HP 10bII Calculator Student Question: Hi- In Example 2, the solution given has 6 years (including CF0) instead of 5. I believe the first year of Carl’s coin purchase should be CF0, but the fifth year – which includes a purchase and a sale – should be…
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Tightening the Money Supply
Which of the following is a monetary policy that will tighten the money supply? Sell government securities Lower the discount rate Decrease government spending Increase taxes CLICK TO REVEAL ANSWER Expand A is the answer. Selling government securities is a monetary policy that will tighten the money supply as the cash used to purchase the…
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How to Slash Gift, Estate, and Generation-Skipping Transfer Taxes: Part III
Good to Know This blog is the third of a three-part series that includes: Part I: Reducing the IRS valuation (but not the real value) of Client Assets, Part II: Creative Use of Installment Sales and Specialized Trusts, and Part III: Using Annuities, Charitable Trusts, and Other Techniques. Private Annuity Sale (PAS) A private annuity…
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Social Security Retirement Benefits
Course: Insurance PlanningLesson 10: Social Security Student Question: Hi- 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? Both $250…
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Refinance Payment Calculation
Dale refinanced his home mortgage to a 30 year fixed mortgage with biweekly payments. How much is each payment if he owed $350,000 at the time of the refinance and the interest rate is 3%? $680 $771 $1,136 $1,242 CLICK TO REVEAL ANSWER Expand A is the answer. Brandon pays his mortgage every two weeks…
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CFP Board awards record number of scholarships in 2021
CFP® Board Updates The CFP Board Center for Financial Planning recently released great news regarding scholarships provided for CFP® Certification Education. In 2021, the Center provided more than $300,000 in funds to 80 scholarship awardees. In total, the Center has provided 180 scholarships, totaling more than $800,000 since the launch of the first scholarship program…
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