Free 3I0-010 Exam Braindumps (page: 20)

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On 15 April 2010 you buy a bond whose coupon falls on 15 January 2010. The interest basis is 30/360. Using bond settlement T+1, how many days do you apply for the interest calculation?

  1. 89 days
  2. 90 days
  3. 91 days
  4. 92 days

Answer(s): C



Which interest convention is used in the bond market for GBP?

  1. ACT/360
  2. ACT/ACT
  3. D. ACT/365

Answer(s): B



The function of a prospectus can best be described as:

  1. establishing a guarantee for the prompt repayment of the issue at maturity
  2. establishing a guarantee of the issues investment value
  3. providing full disclosure about the issue
  4. formalising the contract between the issuer and the lead / co-lead manager

Answer(s): C



A 7% bond, maturing in 10 years, is selling at 92.00.
What is its current yield?

  1. 7.61%
  2. 6.40%
  3. 7%
  4. the yield cannot be determined

Answer(s): A






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