Free 3I0-013 Exam Braindumps (page: 19)

Page 18 of 97

When is the settlement amount of a FRA normally payable?

  1. At the beginning of the forward period
  2. On the trade date
  3. On the maturity (final) date
  4. At any time before the contract’s maturity date

Answer(s): A



What financial product involves exchanging a fixed interest rate for a floating interest rate?

  1. AFXSwap
  2. A repurchase agreement
  3. An interest rate swap (IRS)
  4. A dual swaption

Answer(s): C



What is a junk bond?

  1. An AAA-rated security in payment default
  2. A sub-investment grade instrument
  3. An OECD Government bond
  4. A bond typically paying lower yields than an investment grade instrument

Answer(s): B



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






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