Exam Concepts Explained With Worked Examples

Each page opens with a short answer, works one example with the arithmetic shown, lists common exam traps and links to the official sources and matching practice questions.

• Bond Prices and Interest Rates: Why They Move Opposite

  Why bond prices fall when rates rise, shown with a worked 10-year example at 4%, 5% and 6% yields, plus the exam traps that catch candidates.

• Current Yield vs. Yield to Maturity: Worked Example

  Current yield is annual coupon divided by price; yield to maturity is the discount rate on all cash flows. See both computed for a premium and a discount bond.

• Protective Put Explained: Breakeven, Max Loss, Max Gain

  A protective put pairs owned stock with a put. See breakeven, maximum loss and maximum gain worked per share and per 100-share contract.

• Broker-Dealer vs. Investment Adviser: Key Differences

  How broker-dealers and investment advisers differ in business, registration and standard of conduct, with an SEC-or-state registration worked example.

• Suitability vs. Fiduciary Duty vs. Reg BI: What Applies

  Which standard governs a recommendation: FINRA suitability, Regulation Best Interest or the Advisers Act fiduciary duty. Includes a worked cost example.