Free PRMIA 8013 Exam Questions

Determine the price of a 3 year bond paying a 5% coupon. The 1,2 and 3 year spot rates are 5%, 6% and 7% respectively. Assume a face value of $100. 

Which of the following describes the efficient frontier most accurately? 

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

If interest rates and spot prices stay the same, an increase in the value of a call option will be accompanied by: 

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.