FMVA EXAM 2025 QUESTIONS AND
ANSWERS
Annuity - ....ANSWER ...-Series of payments in equal time periods, guaranteed for
a fixed number of years
Annuity Factor - ....ANSWER ...-Present value of $1 for each of t periods
Arithmetic Mean - ....ANSWER ...-An average calculated by adding the value of
the points in a data set and dividing the sum by the number of data points.
Constant Perpetuity - ....ANSWER ...-A constant stream of identical cash flows
without end
Correlation - ....ANSWER ...-A statistical measure of how two securities move in
relation to each other
Coupon Rate - ....ANSWER ...-The amount of interest received by a bond investor
expressed on a nominal annual basis.
Covariance - ....ANSWER ...-A statistical measure of the variance of two random
variables that are observed or measured in the same mean time period.
Current Yield - ....ANSWER ...-The coupon from a bond divided by the market
price of the bond, expressed as a percentage.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1
ANSWERS
Annuity - ....ANSWER ...-Series of payments in equal time periods, guaranteed for
a fixed number of years
Annuity Factor - ....ANSWER ...-Present value of $1 for each of t periods
Arithmetic Mean - ....ANSWER ...-An average calculated by adding the value of
the points in a data set and dividing the sum by the number of data points.
Constant Perpetuity - ....ANSWER ...-A constant stream of identical cash flows
without end
Correlation - ....ANSWER ...-A statistical measure of how two securities move in
relation to each other
Coupon Rate - ....ANSWER ...-The amount of interest received by a bond investor
expressed on a nominal annual basis.
Covariance - ....ANSWER ...-A statistical measure of the variance of two random
variables that are observed or measured in the same mean time period.
Current Yield - ....ANSWER ...-The coupon from a bond divided by the market
price of the bond, expressed as a percentage.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1
