Which of the following are characteristics of zero-coupon bonds?(1) A zero-coupon bond does not make periodic interest payments throughout the term of the bond.(2) Zero-coupon bonds have significant reinvestment risk because no payments are made until the bond matures.(3) Zero-coupon bonds require taxes to be paid currently on accrued interest each year, even though no interest is received.(4) The duration of a zero-coupon bond is less than its term to maturity.

The CFP Certification exam's investment content focuses on applying investment theory to real-world client scenarios, covering asset classes, portfolio construction, risk management, and performance analysis. Key topics include security types, valuation, asset allocation, and regulatory compliance, with a strong emphasis on aligning investment strategies with client objectives.  Key Investment Content Areas (FPSB India/Global CFP Standards) Investment Theory and Principles: Understanding market cycles, risk-return trade-offs, and investment philosophies. Asset Classes and Securities:... Show more

The CFP Certification exam's investment content focuses on applying investment theory to real-world client scenarios, covering asset classes, portfolio construction, risk management, and performance analysis. Key topics include security types, valuation, asset allocation, and regulatory compliance, with a strong emphasis on aligning investment strategies with client objectives. 

Key Investment Content Areas (FPSB India/Global CFP Standards)
Investment Theory and Principles: Understanding market cycles, risk-return trade-offs, and investment philosophies.
Asset Classes and Securities: Detailed knowledge of equities, fixed income, cash equivalents, and derivatives.
Portfolio Management & Construction: Techniques for asset allocation, diversification, and constructing portfolios to meet client goals.
Investment Vehicles: Characteristics and uses of mutual funds, Exchange Traded Funds (ETFs), and alternative investments.
Quantitative Analysis: Measuring investment performance, calculating returns, and analyzing volatility.
Behavioral Finance: Understanding how cognitive biases impact investor decisions.
Regulatory Compliance: Knowledge of securities laws and ethical standards. 

In the exam, investment topics are tested through both stand-alone questions and comprehensive case studies requiring analysis of client data. 

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