Free PRMIA 8013 Exam Questions

Become PRMIA Certified with updated 8013 exam questions and correct answers

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Total 290 Questions | Updated On: Oct 27, 2025

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Question 1

A bank sells an interest rate swap to its client, with the client agreeing to pay the bank a fixed 4% and receive 3 month LIBOR + 100 basis points, payments due every quarter. After quarter 1, the 3 month LIBOR is 2% pa. Which of the following payments will happen in respect of this swap, assuming the contract notional is $100m, and the rate convention is 30/360.

A : Bank pays customer $1,000,000 and customer pays the bank $750,000

B : Bank pays customer $250,000

C : Customer pays bank $250,000

D : Bank pays customer $1,000,000

Answer: C

Question 2

A currency with a lower interest rate will trade:

A : at a forward discount

B : at a forward premium

C : at the same prices for forwards as for the spots

D : cannot be determined solely on the basis of interest rates

Answer: B

Question 3

Two portfolios with identical Sharpe ratios will have

A : identical expected risk

B : identical expected risk and returns

C : returns identically proportionate to risk

D : identical expected returns

Answer: C

Question 4

Which of the following will have the effect of increasing the duration of a bond, all else remaining equal:I. Increase in bond couponII. Increase in bond yieldIII. Decrease in coupon frequency IV. Increase in bond maturity

A : III and IV

B : I and III

C : I and II

D : II, III and IV

Answer: A

Question 5

The two components of risk in a commodities futures portfolio are:

A : Changes in the convenience yield and storage costs

B : Changes in spot prices and carrying costs, also called commodity lease rates

C : Changes in interest rates and spot prices

D : The risk from change in basis and interest rates

Answer: B

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Total 290 Questions | Updated On: Oct 27, 2025

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