ABA CTFA Exam
Certified Trust and Financial Advisor (CTFA) (Page 4 )

Updated On: 1-Feb-2026

You are considering investing in a zero-coupon bond that sells for $250. At maturity in 16 years it will be redeemed for $1, 000. What approximate annual rate of growth does this represent?

  1. 8%
  2. 9%
  3. 12%
  4. 25%

Answer(s): B



To increase a given present value, the discount rate should be adjusted:

  1. Upward
  2. Downward
  3. True
  4. Fred

Answer(s): B



Single payment loan is a loan:

  1. Made for a specified period
  2. At the end of which payment is due in full
  3. At the end of which half of the payment is due
  4. That expires within a year

Answer(s): A,B



For $1, 000 you can purchase a 5-year ordinary annuity that will pay you a yearly payment of $263.80 for 5 years. The compound annual interest rate implied by this arrangement is closest to:

  1. 8%
  2. 9%
  3. 10%
  4. 11%

Answer(s): C



In a typical loan amortization schedule, the dollar amount of interest paid each period.

  1. Increases with each payment
  2. Decreases with each payment
  3. Remains constant with each payment
  4. Any one of these can be the case

Answer(s): B



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