Free PRMIA 8013 Exam Questions

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 

Which of the following portfolios would require rebalancing for delta hedging at a greater frequency in order to maintain delta neutrality?

Which of the following is not a money market security 

A US treasury bill with 90 days to maturity and a face value of $100 is priced at $98. What is the annual bondequivalent yield on this treasury bill?

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.