Fixed Income - Help

FINRA FINRA Series 66
1

I have my test on Saturday and I am really struggling with Fixed Income and Insurance. Does anyone have any tips to simplify concepts?

2

What are you struggling with specifically on fixed income?

Insurance I can’t help you other than to say every time you see variable with insurance or annuity it is a security and every time you see fixed it is not a security.

3

Hi @Silvia_Green,

Here are some quick notes on Fixed income that might help:

  • Price ↔ Yield Relationship
    – Inverse: If rates go up, bond prices go down (and yields go up), and vice versa.
  • Duration = Sensitivity
    – Longer maturity & lower coupon = more price volatility
    – Short maturity & higher coupon = less volatility.
  • Credit Quality
    – Treasuries = safest, lowest yield.
  • Corporates = higher yield, higher risk.
    – Municipals = tax-advantaged but usually lower yield (think after-tax return).

Yield Types

  • Nominal Yield = coupon rate.
  • Current Yield = annual income ÷ current price.
  • Yield to Maturity (YTM) = total return if held to maturity.
    –Trick: If price < par → YTM > Current Yield > Nominal.

Insurance – Match Product to Client
Instead of memorizing, pair products with needs:

  • Term Life – Cheap, temporary coverage. Great for young families needing high coverage for low cost. No cash value.
  • Whole Life – Fixed premium, cash value builds at guaranteed rate. Suited for conservative, long-term needs.
  • Universal Life – Flexible premium + adjustable death benefit. Good for clients who want flexibility but still want permanent coverage.
  • Variable Life / Variable Universal Life – Cash value in separate accounts (market-based, not guaranteed). Good for growth-minded, risk-tolerant clients.

If there’s a specific concept you’re struggling with, let us know, that way we can give you a more targeted explanation.

My suggestion for now is to go back through the Fixed Income and Insurance sections in detail, and retake the quizzes for both. As you review, pay close attention to any concepts that still feel unclear. Use your exam summary to identify your weakest areas, then do a focused review on those topics. Once you’ve reinforced your weak points, retake a full practice exam to measure improvement and boost your score.

Please let us know if there’s anything else we can do to support you as you study.

Thank you,
Mataia