Free 3I0-012 Exam Braindumps (page: 25)

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A 3-month (91-day) US Treasury bill is quoted at a rate of discount of 4.25%. What is its true yield?

  1. 4.19%
  2. 4.25%
  3. 4.30%
  4. 4.31%

Answer(s): C



Today’s spot value date is Friday 27th February. What is normally the 1-month maturity date? Assume no bank holidays.

  1. 28th March
  2. 29th March
  3. 30th March
  4. 31st March

Answer(s): D



The Market Segmentation hypothesis suggests that the yield curve bends at some point along its length because:

  1. Investors have less appetite for longer-term investments
  2. Borrowers prefer to borrow long-term but lenders prefer to lend short-term
  3. Different types of institution tend to specialize in different maturity ranges
  4. The risk premium becomes significant only at longer maturities

Answer(s): C



Which of the following is always a secured instrument?

  1. ECP
  2. Repo
  3. Interbank deposit
  4. CD

Answer(s): B






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