ORION SERIES 65 STUDY SHEET SOLUTIONS
2026 CORRECT ANSWERS VERIFIED
⩥ A method of valuing an investment, particularly debt securities, by
calculating what future cash returns will be work at the time they are
received, based on estimates of future inflation and interest rates is
known as? Answer: discounted cash flow
⩥ What happens to outstanding fixed-income securities when interest
rates decline? Answer: Prices increase
⩥ In the secondary market, Treasury bond prices are most influenced
by the? Answer: Inflation rate
⩥ An investor is considering the purchase of $100,000 maturity value
of zero-coupon AAA rated corporate bonds scheduled to mature in 20
years. Among the risks that this investor will be assuming are?
Answer: Default Risk and Interest Rate Risk
⩥ An unsecured bond is also known as a? Answer: Debenture
⩥ A bond, preferred stock, or debenture exchangeable at the option of
the holder (for common stock of the issuing corporation) is a?
Answer: Convertible Security
2026 CORRECT ANSWERS VERIFIED
⩥ A method of valuing an investment, particularly debt securities, by
calculating what future cash returns will be work at the time they are
received, based on estimates of future inflation and interest rates is
known as? Answer: discounted cash flow
⩥ What happens to outstanding fixed-income securities when interest
rates decline? Answer: Prices increase
⩥ In the secondary market, Treasury bond prices are most influenced
by the? Answer: Inflation rate
⩥ An investor is considering the purchase of $100,000 maturity value
of zero-coupon AAA rated corporate bonds scheduled to mature in 20
years. Among the risks that this investor will be assuming are?
Answer: Default Risk and Interest Rate Risk
⩥ An unsecured bond is also known as a? Answer: Debenture
⩥ A bond, preferred stock, or debenture exchangeable at the option of
the holder (for common stock of the issuing corporation) is a?
Answer: Convertible Security
