CANNON CTFA COMPREHENSIVE EXAM
QUESTIONS AND CORRECT ANSWERS
STUDY GUIDE
●● dated date
Answer: day the bond begins to accrue interest
●● On-Cycle
Answer: interest paid on month/day of maturity and six months later
●● Off-Cycle
Answer: interest paid on a semi-annual cycle different than month/day of
maturity
●● Short Coupon
Answer: less than 180 days of accrued interest
●● Long Coupon
Answer: more than 180 days of accrued interest
●● Bearer/Coupon Bond Issuance
, Answer: debt instrument that does not have an owner name listed in the
issuer's books or inscribed on the certificate (banned in municipal bonds
in 1983)
●● Registered Bond Issuance
Answer: the certificate of which has the owner's name imprinted on its
face
●● Book-Entry-Only Bond Issuance
Answer: the purchaser receives a receipt rather than an engraved
certificate
●● Premium Bond Pricing
Answer: bond is selling higher now than it was when originated since
interest rates have fallen below the level they were at when the bond was
issued
●● Par Bond Pricing
Answer: bond is selling for face value since interest rates have stayed at
or returned to the level they were at when the bond was issued
●● Discount Bond Pricing
Answer: bond is selling less than face value since interest rates have
risen above the level they were at when bond was issued.
QUESTIONS AND CORRECT ANSWERS
STUDY GUIDE
●● dated date
Answer: day the bond begins to accrue interest
●● On-Cycle
Answer: interest paid on month/day of maturity and six months later
●● Off-Cycle
Answer: interest paid on a semi-annual cycle different than month/day of
maturity
●● Short Coupon
Answer: less than 180 days of accrued interest
●● Long Coupon
Answer: more than 180 days of accrued interest
●● Bearer/Coupon Bond Issuance
, Answer: debt instrument that does not have an owner name listed in the
issuer's books or inscribed on the certificate (banned in municipal bonds
in 1983)
●● Registered Bond Issuance
Answer: the certificate of which has the owner's name imprinted on its
face
●● Book-Entry-Only Bond Issuance
Answer: the purchaser receives a receipt rather than an engraved
certificate
●● Premium Bond Pricing
Answer: bond is selling higher now than it was when originated since
interest rates have fallen below the level they were at when the bond was
issued
●● Par Bond Pricing
Answer: bond is selling for face value since interest rates have stayed at
or returned to the level they were at when the bond was issued
●● Discount Bond Pricing
Answer: bond is selling less than face value since interest rates have
risen above the level they were at when bond was issued.
