Free SOFA-CFE Exam Braindumps
Certified Financial iner Questions 91–95 (page: 20)

Updated On: 10-Feb-2026

A process in which whereby an issuer floats a second bond issue and uses those proceeds to escrow a sufficient amount of U.S. Treasuries to ensure that a call date and price can be met is called:

  1. post-refunding
  2. partial-payment
  3. pre-refunding
  4. full-payment

Answer(s): C



The instrument that involves a contract between two parties to exchange interest payments on a specified principal amount (referred to as the notional principal) for a specific period is called:

  1. transfer rate
  2. interest rate swap
  3. interest relocation
  4. passing on interest rate

Answer(s): B



Premium paid for which bonds will be written off immediately to prevent a negative yield from being generated?

  1. Preventive holdings
  2. Detective coupon
  3. Zero coupon convertible
  4. Amortization rate

Answer(s): C



The amount paid plus or minus any premium or discount payment to date to adjust the value to par or face amount by maturity date is known as:

  1. amortized cost
  2. reimbursement cost
  3. neutral cost
  4. face value

Answer(s): A



An insurance company may invest in common stocks in order to:

  1. earn dividend income
  2. achieve equity appreciation
  3. Both A and B
  4. Neither A nor B

Answer(s): C



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