QUESTION: 149

In the bond market, which of the following is true about the settlement amount?

The settlement amount is the sum of the redemption value plus all coupons paid by the issuer.
If the yield and the coupon are exactly the same, the settlement amount and the face value will be identical.
The settlement amount is always calculated using the redemption price.
On a coupon date, if the bond quotes at par, the settlement amount and the face value will be identical.

Answer(s): D

QUESTION: 150

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?

89 days
90 days
91 days
92 days

Answer(s): C

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QUESTION: 151

What is the documentation in which the parties agree to the terms that will govern future transactions?

Standard settlement instructions
Netting agreement
Terms of engagement
Master agreement

Answer(s): B

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QUESTION: 152

Which of the following is considered a good practice in trade confirmation?

Confirmations should be issued to non-front office personnel only
All confirmations must be sent on the day following the trade date at the latest
Multiple confirmations sent through different distribution channels reduce potential errors
Counterparties should send confirmations, or positively affirm trades within 24 hours of the trade booking

Answer(s): B

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Free 3I0-013 Exam Braindumps (page: 39)

QUESTION: 149

QUESTION: 150

QUESTION: 151

QUESTION: 152

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