RETAKE EXAM 2026 VERIFIED QUESTIONS AND
DETAILED SOLUTIONS
◉ Which is the most frequent type of transaction in financial
markets? Answer: Secondary markets
◉ Which of the 5 white financial function keys represents a series of
cash disbursements? Answer: PMT
◉ If payments are made semi-annually, which key inputs must be
adjusted? Answer: PMT, I/Y and N
◉ Which can be defined as change in value of cash over time?
Answer: Interest rate, inflation rate, and discount rate
◉ Which signifies a need to change the calculator to begin mode?
Answer: Recurring payments made at the beginning of the year.
◉ Why is an annuity due more valuable than an ordinary annuity?
Answer: Payment are received earlier
◉ Which is always larger? Answer: Future value
, ◉ If you wanted to create an annuity with annual adjustments for
inflation, you would use: Answer: Perpetual growth annuity
◉ Which ratio will always be smaller? Answer: Net margin
◉ If net working capital increases, it causes? Answer: A cash outflow
◉ What feature distinguishes bonds from stocks? Answer: Periodic
cash payments must be made to investors and capital gains can be
realized by investors.
◉ Yield on a bond can best be described as? Answer: Rate of
increase in value if investment
◉ When is the bond yield equal to the coupon rate? Answer: At pr
price
◉ For a semi annual pay bond, which inputs must be adjusted?
Answer: N, I/Y and PMT
◉ Which describes the relationship between price and yield?
Answer: Price increases cause yield decreases