Free 3I0-010 Exam Braindumps (page: 15)

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In a scenario where long-term interest rates are higher than short-term interest rates, the yield curve would best be described as:

  1. flat
  2. negative or inverse
  3. positive
  4. neutral

Answer(s): C



A UK Treasury Bill has 91 days to maturity. Its redemption value is GBP 10,000.00.
What is the purchase price of this bill using a discount rate of 6% per annum?

  1. GBP 9,400.00
  2. GBP 9,852.22
  3. GBP 9,850.41
  4. GBP 9,848.33

Answer(s): C



A USD 1 million US Treasury Bill (91 days) is offered at a discount rate of 5.50%. The offer price will be:

  1. USD 1,000,000.00
  2. USD 986,097.22
  3. USD 945,000.00
  4. USD 986,287.67

Answer(s): B



A bond selling at a discount will be selling for:

  1. less than 100%
  2. 100%
  3. more than 100%
  4. more than a bond selling at a premium

Answer(s): A






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