NACVA CVA Exam - Topic 7 Question 113 Discussion

Actual exam question for NACVA's CVA exam

Question #: 113
Topic #: 7

The rate of interest that, when applied to the expected future payments equal to the debt security's observed market price is called the:

AYield to maturity

BReturn on investment

CMarket interest

DInterest earning

Show Suggested Answer

Suggested Answer: A

by Linsey at Jul 11, 2025, 10:58 AM

Limited Time Offer

25%

Off

Get Premium CVA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lindsey

4 months ago

Nah, I think it's B, return on investment.

upvoted 0 times

...

Marjory

4 months ago

I thought it could be market interest too, but A makes sense.

upvoted 0 times

...

Sol

4 months ago

It's definitely A, yield to maturity!

upvoted 0 times

...

Karma

5 months ago

Wait, is it really just yield to maturity? Seems too simple.

upvoted 0 times

...

Gerardo

5 months ago

Totally agree, that's the right term.

upvoted 0 times

...

Izetta

5 months ago

I thought Return on investment was more about overall profitability, so I’m leaning towards A as well. But I’m still second-guessing myself!

upvoted 0 times

...

Aracelis

5 months ago

I feel like I've seen a similar question before, and it was definitely about yield. A seems right, but I’m a bit confused about the other options.

upvoted 0 times

...

Noah

6 months ago

I'm not entirely sure, but I remember something about yield being related to market price. Could it be C, Market interest?

upvoted 0 times

...

Andrew

6 months ago

I think the answer is A, Yield to maturity. We discussed it in class as the rate that equates future cash flows to the current price.

upvoted 0 times

...

Rene

6 months ago

I'm a little confused by the wording of the question. I'll read it over again and try to break it down.

upvoted 0 times

...

Frederica

6 months ago

Yield to maturity, that's the one! I remember learning about that in class.

upvoted 0 times

...

Hannah

6 months ago

Okay, let me see... I think the key is understanding the concept of yield to maturity. I'll focus on that.

upvoted 0 times

...

Josefa

7 months ago

Hmm, I'm a bit unsure about this one. I'll need to think it through carefully.

upvoted 0 times

...

Tiffiny

7 months ago

This question seems straightforward, I'm pretty confident I know the answer.

upvoted 0 times

...

Justine

8 months ago

Actually, I believe it's A) Yield to maturity because it takes into account the future payments.

upvoted 0 times

...

Bea

9 months ago

I'm not sure, but I think it's B) Return on investment.

upvoted 0 times

...

Anabel

9 months ago

Yield to maturity, the only rate that matters when you're trying to time the market just right. *winks*

upvoted 0 times

...

Mindy

9 months ago

Interest earning? What is this, a savings account? Clearly, the answer is yield to maturity.

upvoted 0 times

Noel

7 months ago

Yield to maturity is correct. It's the rate that makes the present value of future payments equal to the market price.

upvoted 0 times

...

Andree

9 months ago

Return on investment? Really? That's just plain wrong. Do they even try on these questions?

upvoted 0 times

Rebecka

8 months ago

A) Yield to maturity

upvoted 0 times

...

Mozelle

9 months ago

I agree with Franchesca, Yield to maturity makes sense.

upvoted 0 times

...

Vernell

9 months ago

Yield to maturity, definitely. I can almost smell the right answer from here!

upvoted 0 times

...

Brett

9 months ago

Hmm, I'm pretty sure it's the market interest rate. That just makes the most sense to me.

upvoted 0 times

Audry

7 months ago

I believe it's the return on investment.

upvoted 0 times

...

Audry

8 months ago

I think it's actually the yield to maturity.

upvoted 0 times

...

Julian

10 months ago

Yield to maturity, of course! Anything else would just be a wild guess.

upvoted 0 times

Ivan

9 months ago

B) Return on investment

upvoted 0 times

...

Erick

9 months ago

Yes, it's the rate that makes the present value of future payments equal to the market price.

upvoted 0 times

...

Sherly

9 months ago

Definitely, yield to maturity is the correct answer.

upvoted 0 times

...

Tiffiny

9 months ago

Yield to maturity is the correct answer.

upvoted 0 times

...

Skye

9 months ago

A) Yield to maturity

upvoted 0 times

...

Franchesca

10 months ago

I think the answer is A) Yield to maturity.

upvoted 0 times

...