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Finra Series-7 Exam - Topic 2 Question 78 Discussion

What rate of return takes into consideration appreciation or depreciation in market value relating to the par value of a debt security?
D) basis yield
A) current yield
B) yield to maturity
C) nominal yield

Finra Series-7 Exam - Topic 2 Question 78 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 78
Topic #: 2
[All Series-7 Questions]

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

Show Suggested Answer Hide 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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Isaac
7 months ago
Nominal yield doesn’t account for market value changes.
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Luis
8 months ago
Wait, are we sure about that?
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Alva
8 months ago
Yield to maturity makes sense, right?
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Eleni
8 months ago
I thought it was current yield?
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Stanton
8 months ago
Definitely yield to maturity!
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Destiny
9 months ago
I thought nominal yield was just the stated interest rate, so it probably doesn't consider market value fluctuations.
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Kenny
9 months ago
I feel like I've seen a question like this before, and yield to maturity seems to fit because it accounts for the total return over the life of the bond.
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Jin
9 months ago
I'm not entirely sure, but I remember something about current yield only focusing on the income aspect, not the market value changes.
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Mozell
9 months ago
I think the answer might be yield to maturity since it considers both the coupon payments and any changes in market value.
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Reta
9 months ago
Yield to maturity, that's the one! It's the rate that gives you the total return on a bond, including capital gains or losses. I feel good about selecting that option.
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Paola
9 months ago
Wait, is it basis yield? I'm getting a bit confused between all these different yield calculations. I better review my notes before answering this one.
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Brandon
9 months ago
Okay, I remember learning about this in class. Yield to maturity is the rate that accounts for both the coupon payments and any changes in the bond's market price. I'm pretty confident that's the right answer here.
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Renea
9 months ago
Hmm, I'm not totally sure about this one. I know current yield and nominal yield don't consider market value changes, but I'm a bit fuzzy on the differences between yield to maturity and basis yield. I'll have to think this through carefully.
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Gilberto
9 months ago
This question seems straightforward - I think the answer is yield to maturity, since that takes into account changes in market value.
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Daniel
9 months ago
Okay, the key here is to focus on the CIMA definition of accountability. I think option D captures all the important aspects, so that's my best guess.
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Crissy
9 months ago
Okay, I've got this. The correct answer is option B - that's the proper syntax for declaring an external DTD file in the document type declaration. I'm confident in this one.
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Mollie
1 year 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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Talia
1 year ago
A) current yield
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Jesus
1 year ago
I agree, cat memes are the way to go!
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Deeann
1 year ago
B) yield to maturity
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Mona
1 year ago
Who needs bonds when you can have cat memes?
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Silva
1 year ago
D) basis yield
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Marsha
1 year ago
C) nominal yield
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Curt
1 year ago
A) current yield
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Elvis
1 year ago
I prefer yield to maturity too. Bonds are still a good way to diversify your portfolio.
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Dean
1 year ago
D) basis yield
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Pura
1 year ago
C) nominal yield
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Mona
1 year ago
B) yield to maturity
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Augustine
1 year ago
A) current yield
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Kristine
1 year ago
A) current yield
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Lourdes
1 year ago
B) yield to maturity
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Arthur
1 year ago
I prefer yield to maturity too. Bonds are still a good way to diversify your portfolio.
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Brande
1 year ago
D) basis yield
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Ciara
1 year ago
C) nominal yield
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Ronald
1 year ago
A) current yield
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Denae
1 year ago
B) yield to maturity
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Maira
1 year ago
A) current yield
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Kati
1 year 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
1 year 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
1 year ago
I agree with Silvana. Yield to maturity considers both interest payments and changes in market value.
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Jenelle
1 year ago
Yield to maturity, for sure. This is a classic question they love to ask on these exams.
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Silvana
1 year ago
I think the answer is B) yield to maturity.
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Gearldine
1 year 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
1 year ago
I'm not sure, but I think it might be A) current yield.
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Tashia
1 year ago
I agree with Bernardine, because yield to maturity factors in market value changes.
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Bernardine
1 year ago
I think the answer is B) yield to maturity.
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