ICMA Exam FMFQ Topic 2 Question 73 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 73
Topic #: 2

[All FMFQ Questions]

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

AYou have purchased a credit risk free security for which you have paid face value and will receive at maturity face value plus accrued interest

BYou have purchased a credit risk free security for which you have paid less than face value and will receive at maturity face value

CYou 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

DYou have purchased an interest rate risk free security for which you have paid less than face value and will receive at maturity face value

Show Suggested Answer

Suggested Answer: C

by Carmelina at Dec 08, 2024, 07:01 PM

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Holley

6 days ago

Hmm, I'm not sure about this one. Let me think... Ah, got it! The answer must be C. Accrued interest, that's the key. I should have paid more attention in my finance class.

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Felicidad

7 days ago

This question is a piece of cake! Of course, the answer is D. Who doesn't know that Treasury Bills are interest rate risk-free securities? I could ace this exam with my eyes closed.

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Devon

8 days ago

I agree with Eric. Treasury Bills are a great investment option for those looking for a low-risk, short-term investment.

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Eric

9 days ago

Option B is the correct answer. Treasury Bills are a type of short-term government debt securities that are sold at a discount to their face value and redeemed at maturity for the full face value.

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