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3I0-008 PDF DEMO:

QUESTION NO: 1
Click on the <> Button to view the Formula Sheet.
A 1-month (30-day) USCP with a face value of USD 5 million is quoted at a rate of discount of 2.31%.
How much is the paper worth?
A.USD 4,884,500.00
B.USD 4,990,375.00
C.USD 4,990.506.85
D.USD 4,990,393.49
ANSWER: b

QUESTION NO: 2
Click on the <> Button to view the Formula Sheet.
Which of the following is issued by auction?
A.Treasury bill
B.CD
C.BA
D.USCP
ANSWER: a

QUESTION NO: 3
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Which of the following will tend to have the higher yield?
A.Treasury bill
B.Repo against Treasury bill collateral
C.They have the same yield
D.Cannot say
ANSWER: b

QUESTION NO: 4
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In case of a default on a repo by the seller:
A.The buyer can liquidate the collateral
B.The buyer has to liquidate the collateral
C.The buyer cannot liquidate the collateral until the seller is declared insolvent
D.A court is appointed to decide what happens to the collateral
ANSWER: a

QUESTION NO: 5
Click on the <> Button to view the Formula Sheet.
What are the secondary market proceeds of a CD with a face value of EUR 5 million and a coupon of 3% that was issued at par for 182 days and is now trading at 3% but with only 7 days remaining to maturity?
A.EUR 4,997,085.03
B.EUR 5,000,000.00
C.EUR 5,071,086.45
D.EUR 5,072,874.16
ANSWER: d

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Updated: May 27, 2022