CRPC EXAM ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |ALREADY GRADED A+

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CRPC EXAM 2026-2027 ACTUAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+
What is the price of a bond with a 7% coupon, a $1,000 par value, and a
maturity of 20 years if the market interest rate for similar bonds is 6%?


A)
$1,115.57
B)
$893.23
C)
$1,074.39
D)
$1,000.00 ......ANSWER......Set the calculator for 2 P/YR and use the
END mode. The inputs then are as follows: END
1,000 [FV], 35 [PMT], 20 [SHIFT] [N] = 40, 6 [I/YR], and solve for PV =
$1,115.57.


Note: The $35 payment is the semiannual payment of the bond. This is
computed by taking the 7% coupon rate the par value of $1,000 = $70
and divide that by 2 to get the semiannual interest paid, in this case
$35.



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Also, the yield to maturity (YTM) is less than the coupon rate, thus the
bond must be selling at a premium.


A
LO 2-8


This year, your 63-year-old client had $17,025 of earned income and
$30,000 of investment income. He was also drawing Social Security
benefits. Which one of the following correctly describes the impact on
his Social Security benefits?
A)
He loses $1 of benefits for every $2 above the "allowable limit."
B)
There is no reduction to his benefits.
C)
He loses $1 of benefits for every $1 above the "allowable limit."
D)
He loses $1 of benefits for every $3 above the "allowable limit."
......ANSWER......The client's earnings (earned income) are below the
allowable limit for the current year ($21240 2023 ).


Remember that according to the work penalty rule, only earned
income is counted toward the "allowable limit."




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B
LO 3-3


Which one of the following is a correct statement about the amount of
Social Security retirement benefits available when a fully insured
worker's retirement benefit begins at full retirement age (FRA)?
A)
A 63-year-old spouse of the retired worker will receive at least 50% of
the worker's PIA.
B)
The worker will receive 80% of his or her primary insurance amount
(PIA).
C)
If the spouse of the worker has attained FRA and is entitled to benefits
on their earning record, the benefit is the lesser of 100% of the spouse's
own PIA or 50% of the worker's PIA.
D)
If the spouse is at or above his or her full retirement age when
commencing Social Security benefits, the spouse will receive at least
50% of the worker's PIA. ......ANSWER......The spouse who starts
receiving benefits at his or her Social Security full retirement age will
receive 50% of the worker's PIA unless the spouse's Social Security
benefit is higher based on his or her own earnings.




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(Note: The FRA began increasing for those workers who reached age
62 in the year 2000.) At full retirement age the worker will receive
100% of PIA. The 50% of PIA is reduced for each month the spouse is
under full retirement age when benefits begin. A spouse who is at FRA
and entitled to benefits on their own working record would receive
the higher of 100% of their own PIA or 50% of the spouse's PIA.


D
LO 3-4


Which one of the following is correct regarding most types of tax
exempt interest and the taxation of Social Security benefits?
A)
None of the tax-exempt interest is included in the computation of the
taxation of Social Security benefits.
B)
50% of the tax-exempt interest is included in the computation of the
taxation of Social Security benefits.
C)
85% of the tax-exempt interest is included in the computation of the
taxation of Social Security benefits.
D)
All of the tax-exempt interest is included in the computation of the
taxation of Social Security benefits. ......ANSWER......All tax-exempt
interest income is included in computing the portion of Social Security


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