Online Access Free FMFQ Practice Test

You have asked a bank to give you a rate at which you can sell SEK (Sweish Krone) and buy NOK (Norwegian Krone) for delivery in two days. What is the name of this sort of FX rate?

• A.Quote rate
• B.Dual rate
• C.Cross rate
• D.Forward rate

The dirty price of a bond is which of the following:

• A.Clean price + interest of the period from settlement until the next coupon payment date
• B.The same as the clean price
• C.Clean price + trading commissions
• D.Clean price + interest of the period from the last coupon payment date

You purchase a USD Treasury Bill. Which of the following sentences best describes the trade you have done?

• A.You have purchased an interest rate risk free security for which you have paid face value and will receive at maturity face value plus accrued interest
• B.You have purchased a credit risk free security for which you have paid less than face value and will receive at maturity face value
• C.You have purchased an interest rate risk free security for which you have paid less than face value and will receive at maturity face value
• D.You have purchased a credit risk free security for which you have paid face value and will receive at maturity face value plus accrued interest

An EUR-denominated Eurobond matures on 15 January 2017 and pays an annual coupon of 5% on an act/act basis. The bond is trading at a yield to maturity of 6% for settlement on 10 March 2015. Which of the following ststements is true of its clean price?

• A.Its price will be below 100
• B.Its price will be above 100
• C.Need more information
• D.Its price will be 100

Which of the following rates represents the lowest investment-grade rating?

• A.A-
• B.C+
• C.BBB-
• D.BB