Crpc Exam Practice Exam Actual Exam 400 Questions And Correct Detailed Answers With Rationales (Verified Answers) |already Graded A+

What is the price of a bond with a 7% coupon, a $1,000 par value, and a maturity of 20 years if the market interest rate for similar bonds is 6%? A) $1,115.57 B) $893.23 C) $1,074.39 D) $1,000.00 {Ans: A) $1,115.57 Set the calculator for 2 P/YR and use the END mode. The inputs then are as follows: 1,000 [FV], 35 [PMT], 20 [SHIFT] [N] = 40, 6 [I/YR], and solve for PV = $1,115.57. Note: The $35 payment is the semiannual payment of the bond. This is computed by taking the 7% coupon rate the par value of $1,000 = $70 and divide that by 2 to get the semiannual interest paid, in this case $35. Also, the yield to maturity (YTM) is less than the coupon rate, thus the bond must be selling at a premium.}Dan died at age 69. His beneficiary was his son Robert, age 44. Robert has come to you to ask about his required minimum distribution (RMD) options. Which of the following would be acceptable RMD options for Robert? Robert must begin distributions in the year following the year Dan died. Robert can move Dan's account into an inherited IRA. He must