Online Access Free 3I0-010 Exam Questions

The effective Euro overnight reference rate, computed as a weighted average of all overnight unsecured lending transactions undertaken in the interbank market and computed with the help of the European Central Bank, is called:

• A.SONIA
• B.EURIBOR
• C.EURONIA
• D.EONIA

The "centralized collateral management service" offers which of the following services for its clients?:

• A.the valuation and transfer of collateral in any type of repo
• B.the valuation and transfer of collateral in general collateral (GC) repos only
• C.the valuation and transfer of collateral in triparty repos only
• D.the valuation and transfer of collateral in special repos only

What is the "spread" in an interest rate swap (IRS)?

• A.the difference between the swap rate and the benchmark government yield
• B.the payment made when a swap is terminated
• C.the interest rate differential between the fixed and floating leg of the swap
• D.the brokerage fee for an interest rate swap transaction

Today is the fixing date for 6x9 FRA that you sold at 5.50% and for which the FRABBA LIBOR is now 6.00%. Which of the following is true?

• A.You will pay a cash settlement to the counterparty
• B.You will receive the cash settlement
• C.There is insufficient information to make a determination
• D.There is no cash settlement pending

The purchase price of a coupon bond

• A.is always higher than its face value
• B.is higher than its face value if, and only if, its coupon rate is higher than its yield to maturity on the coupon date
• C.is higher than its face value if, and only if, its coupon rate is lower than its yield to maturity on the coupon date
• D.is lower than its face value if, and only if, its coupon rate is higher than its yield to maturity on the coupon date