CFP Exam -
Comprehensive Prep
Questions and Answers
Updated 2026
WhatBisBtheBformulaBforBtheBinflationBadjustedBinterestBrateB(realBrateBofBreturn)?B-
BAnswer[B(1B+BafterBtaxBreturnB/B1B+Binflation)B-B1B]BxB100
WhenBtheBNetBPresentBValueBisB_______,BtheBinterestBrateBisBtheBsameBasBtheBIntern
alBRateBofBReturnB(IRR).B-BAnswerzero
T/F?BAlwaysBuseBbeginBmodeBforBcollegeBtuitionBpaymentBcalculations.B-BAnswerT
AllBbondBcalculationsBareBinB____BpaymentsBperByearBunlessBtheBquestionBstatesBothe
rwise.BCalculatorBmustBbeBinB______Bmode.B-BAnswertwo,Bend
ForBanalyzingBbondsBwithBcallBfeatures,ByouBmayBbeBrequiredBtoBcalculateBtheByieldBto
BmaturityBorBtheByieldBtoB_____.B-BAnswercall
FormulaBforBcalculatingBtheBconversionBvalueBofBaBconvertibleBbond...BconversionBvalue
B=B-BAnswer(parBvalueB/BconversionBprice)BxBcommonBstockBprice
T/F?BYTMBofBzeroBcouponBbondsBareBstillBcalculatedBusingBsemiannualBpayments.B-
BAnswerT
TheBexceptionBtoBPresentBValueBenteredBasBaBnegativeBnumberBisBtheB____________B
calculation.BRegardingBthisBcalculation,BtheBPVBisBpositiveBbecauseBtheBPVBisBtheBamou
,ntBofBtheBloanBtheyBreceivedB(_________)BtoBbuyBtheBhome,BsoBitBisBaBpositiveBnumb
er.B-BAnsweramortization,Binflow
TheBsixBkeyBpointsBofBtheB_______B___B______BareBasBfollows....
1.BActBwithBhonesty,Bintegrity,Bcompetence,BandBdiligenceB
2.BActBinBtheBclient'sBbestBinterests
3.BExerciseBdueBcareB
4.BAvoidBorBdiscloseBandBmanageBconflictsBofBinterestB
5.BMaintainBtheBconfidentialityBandBprotectBtheBprivacyBofBclientBinformationB
6.BActBinBaBmannerBthatBreflectsBpositivelyBonBtheBfinancialBplanningBprofessionBandBt
heBCFPBcertificationB-BAnswercodeBofBethics
ABCFPBcertificantBshallBrespondBinBwritingBtoBtheBCFPBBoardBinBresponseBtoBaBcomplai
ntBwithinBhowBmanyBdays?B-BAnswer30Bdays
ABcertificantBshallBnotifyBCFPBBoardBinBwritingBofBanyBchargeBofBaBfelonyBorBrelevantB
misdemeanor,BexceptBmisdemeanorB_________BoffensesBorBtrafficBordinanceBviolations
BunlessBsuchBoffenseBinvolvesBtheBuseBofBalcoholBorBdrugsB(_________BoffenseBorBmo
re),BorBofBanyBprofessionalBsuspensionBorBbarBwithinB30BcalendarBdaysBafterBtheBdate
BonBwhichBtheBcertificantBisBnotifiedBofBtheBconviction,Bsuspension,BorBbar.B-
BAnswertraffic,Bsecond
BethBDannerBspentBnearlyBaByearBandBaBhalfBtakingBtheBCFPBeducationBcoursesBandBfi
nallyBpassingBtheBexam.BUponBsubmittalBofBherBpaperwork,BtheBCFPBBoardBfoundBcaus
eBtoBsuspendBissuanceBofBtheBCFP®BcertificationBforB2Byears.BWillBtheBBoardBpubliclyB
publishBsuchBaBsuspension?
a.BYes,BsuspensionsBareBautomaticallyBpublished.
b.BNo,BbutBtheBCFPBBoardBwillBrequireBherBtoBnotifyBallBherBclients.
,c.BMaybe,BitBisBatBtheBdiscretionBofBtheBcommittee.
d.BNo,BsheBneverBattainedBtheBmarks.B-BAnswerd
AccordingBtoBArticleB15.1.AB-
BifBanBorderBofBtheBCommissionBisBnotBappealedBwithinB30BcalendarBdaysBafterBtheBn
oticeBwasBsentBtoBtheBcertificant,BsuchBorderBshallBbecomeB________.B-BAnswerfinal
FeliciaBworksBatBanBRIABfirmBasBanBinvestmentBadvisorBrepresentative.BHerBcompanyBh
asBsomeBconcernsBaboutBhowBherBbecomingBaBfiduciaryBonceBsheBobtainsBherBCFP®B
marksBwillBfitBintoBtheirBbusinessBmodel.BHowBshouldBsheBreactBtoBthis?
a.BThisBisBaBredBflagBandBsheBshouldBperhapsBseekBaBnewBemployer.
b.BSheBshouldBbeBconcernedBbecauseBsheBisBalreadyBaBfiduciary.
c.BSheBshouldBspeakBwithBherBmanagerBandBherBlegalBand/orBcomplianceBdepartmentB
aboutBtheirBconcernsBbeforeBbecomingBaBCFP®Bprofessional.
d.BSheBshouldBconsiderBnotBpursingBtheBCFP®BdesignationBbecauseBtheyBareBwithinBth
eirBrightsBtoBmakeBherBrelinquishBit.
ThisBreallyBhasBnothingBtoBdoBwithBherBbecomingBaBCFP®BprofessionalBorBnot.BAsBanB
IARBsheBisBalreadyBheldBtoBaBfiduciaryBcapacity.BSheBshouldBbeBconcernedBthatBherBco
mpanyBseemsBnotBtoBbeBawareBofBthisB-BAnswerB
WhichBofBtheBfollowingBstatementsBisBtrue?
, I.BABCFP®BcertificantBmayBnotBcommingleBclientBfundsBwithBtheBfundsBofBhis/herBfinan
cialBplanningBfirm.
II.BClientBfundsBcanBbeBcommingledBinBaBcommonBclientBinvestmentBaccountBwithBthe
Bclient'sBpermissionBandBadequateBrecordBkeeping.
a.BI
b.BII
c.BIBandBII
d.BNeitherBIBnorBIIB-BAnswerC
InBregardsBtoBaBcomplaintBagainstBaBcertificant,BallBanswersBtoBcomplaintsBshallBbe:B
I.BInBwritingB
II.BSubmittedBwithinBthirtyBcalendarBdaysBfromBtheBdateBofBserviceBofBtheBcomplaintB
onBtheBcertificantB
a.BI
b.BII
c.BBothBIBandBII
d.BNeitherBIBnorBIIB-BAnswerC
InBregardBtoBrevocationBgroundsBforBdiscipline,BrevocationBis:
a.BforBaBperiodBofBtimeBnotBexceedingBtwoB(2)Byears.
b.BforBaBperiodBofBtimeBnotBexceedingBfiveB(5)Byears.
c.Bpermanent
d.BsuspendedBforBaBperiodBofBtime.B-BAnswerC
Comprehensive Prep
Questions and Answers
Updated 2026
WhatBisBtheBformulaBforBtheBinflationBadjustedBinterestBrateB(realBrateBofBreturn)?B-
BAnswer[B(1B+BafterBtaxBreturnB/B1B+Binflation)B-B1B]BxB100
WhenBtheBNetBPresentBValueBisB_______,BtheBinterestBrateBisBtheBsameBasBtheBIntern
alBRateBofBReturnB(IRR).B-BAnswerzero
T/F?BAlwaysBuseBbeginBmodeBforBcollegeBtuitionBpaymentBcalculations.B-BAnswerT
AllBbondBcalculationsBareBinB____BpaymentsBperByearBunlessBtheBquestionBstatesBothe
rwise.BCalculatorBmustBbeBinB______Bmode.B-BAnswertwo,Bend
ForBanalyzingBbondsBwithBcallBfeatures,ByouBmayBbeBrequiredBtoBcalculateBtheByieldBto
BmaturityBorBtheByieldBtoB_____.B-BAnswercall
FormulaBforBcalculatingBtheBconversionBvalueBofBaBconvertibleBbond...BconversionBvalue
B=B-BAnswer(parBvalueB/BconversionBprice)BxBcommonBstockBprice
T/F?BYTMBofBzeroBcouponBbondsBareBstillBcalculatedBusingBsemiannualBpayments.B-
BAnswerT
TheBexceptionBtoBPresentBValueBenteredBasBaBnegativeBnumberBisBtheB____________B
calculation.BRegardingBthisBcalculation,BtheBPVBisBpositiveBbecauseBtheBPVBisBtheBamou
,ntBofBtheBloanBtheyBreceivedB(_________)BtoBbuyBtheBhome,BsoBitBisBaBpositiveBnumb
er.B-BAnsweramortization,Binflow
TheBsixBkeyBpointsBofBtheB_______B___B______BareBasBfollows....
1.BActBwithBhonesty,Bintegrity,Bcompetence,BandBdiligenceB
2.BActBinBtheBclient'sBbestBinterests
3.BExerciseBdueBcareB
4.BAvoidBorBdiscloseBandBmanageBconflictsBofBinterestB
5.BMaintainBtheBconfidentialityBandBprotectBtheBprivacyBofBclientBinformationB
6.BActBinBaBmannerBthatBreflectsBpositivelyBonBtheBfinancialBplanningBprofessionBandBt
heBCFPBcertificationB-BAnswercodeBofBethics
ABCFPBcertificantBshallBrespondBinBwritingBtoBtheBCFPBBoardBinBresponseBtoBaBcomplai
ntBwithinBhowBmanyBdays?B-BAnswer30Bdays
ABcertificantBshallBnotifyBCFPBBoardBinBwritingBofBanyBchargeBofBaBfelonyBorBrelevantB
misdemeanor,BexceptBmisdemeanorB_________BoffensesBorBtrafficBordinanceBviolations
BunlessBsuchBoffenseBinvolvesBtheBuseBofBalcoholBorBdrugsB(_________BoffenseBorBmo
re),BorBofBanyBprofessionalBsuspensionBorBbarBwithinB30BcalendarBdaysBafterBtheBdate
BonBwhichBtheBcertificantBisBnotifiedBofBtheBconviction,Bsuspension,BorBbar.B-
BAnswertraffic,Bsecond
BethBDannerBspentBnearlyBaByearBandBaBhalfBtakingBtheBCFPBeducationBcoursesBandBfi
nallyBpassingBtheBexam.BUponBsubmittalBofBherBpaperwork,BtheBCFPBBoardBfoundBcaus
eBtoBsuspendBissuanceBofBtheBCFP®BcertificationBforB2Byears.BWillBtheBBoardBpubliclyB
publishBsuchBaBsuspension?
a.BYes,BsuspensionsBareBautomaticallyBpublished.
b.BNo,BbutBtheBCFPBBoardBwillBrequireBherBtoBnotifyBallBherBclients.
,c.BMaybe,BitBisBatBtheBdiscretionBofBtheBcommittee.
d.BNo,BsheBneverBattainedBtheBmarks.B-BAnswerd
AccordingBtoBArticleB15.1.AB-
BifBanBorderBofBtheBCommissionBisBnotBappealedBwithinB30BcalendarBdaysBafterBtheBn
oticeBwasBsentBtoBtheBcertificant,BsuchBorderBshallBbecomeB________.B-BAnswerfinal
FeliciaBworksBatBanBRIABfirmBasBanBinvestmentBadvisorBrepresentative.BHerBcompanyBh
asBsomeBconcernsBaboutBhowBherBbecomingBaBfiduciaryBonceBsheBobtainsBherBCFP®B
marksBwillBfitBintoBtheirBbusinessBmodel.BHowBshouldBsheBreactBtoBthis?
a.BThisBisBaBredBflagBandBsheBshouldBperhapsBseekBaBnewBemployer.
b.BSheBshouldBbeBconcernedBbecauseBsheBisBalreadyBaBfiduciary.
c.BSheBshouldBspeakBwithBherBmanagerBandBherBlegalBand/orBcomplianceBdepartmentB
aboutBtheirBconcernsBbeforeBbecomingBaBCFP®Bprofessional.
d.BSheBshouldBconsiderBnotBpursingBtheBCFP®BdesignationBbecauseBtheyBareBwithinBth
eirBrightsBtoBmakeBherBrelinquishBit.
ThisBreallyBhasBnothingBtoBdoBwithBherBbecomingBaBCFP®BprofessionalBorBnot.BAsBanB
IARBsheBisBalreadyBheldBtoBaBfiduciaryBcapacity.BSheBshouldBbeBconcernedBthatBherBco
mpanyBseemsBnotBtoBbeBawareBofBthisB-BAnswerB
WhichBofBtheBfollowingBstatementsBisBtrue?
, I.BABCFP®BcertificantBmayBnotBcommingleBclientBfundsBwithBtheBfundsBofBhis/herBfinan
cialBplanningBfirm.
II.BClientBfundsBcanBbeBcommingledBinBaBcommonBclientBinvestmentBaccountBwithBthe
Bclient'sBpermissionBandBadequateBrecordBkeeping.
a.BI
b.BII
c.BIBandBII
d.BNeitherBIBnorBIIB-BAnswerC
InBregardsBtoBaBcomplaintBagainstBaBcertificant,BallBanswersBtoBcomplaintsBshallBbe:B
I.BInBwritingB
II.BSubmittedBwithinBthirtyBcalendarBdaysBfromBtheBdateBofBserviceBofBtheBcomplaintB
onBtheBcertificantB
a.BI
b.BII
c.BBothBIBandBII
d.BNeitherBIBnorBIIB-BAnswerC
InBregardBtoBrevocationBgroundsBforBdiscipline,BrevocationBis:
a.BforBaBperiodBofBtimeBnotBexceedingBtwoB(2)Byears.
b.BforBaBperiodBofBtimeBnotBexceedingBfiveB(5)Byears.
c.Bpermanent
d.BsuspendedBforBaBperiodBofBtime.B-BAnswerC
