Free ICMA FMFQ Exam Questions

Become ICMA Certified with updated FMFQ exam questions and correct answers

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Total 50 Questions | Updated On: Jan 08, 2025

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Question 1

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 : price will be above 100

B : price will be below 100

C : price will be 100

D : ed more information

Answer: B

Question 2

Which of the following methods of raising funds will not be used by governments?

A : rect borrowing from banks

B : uing bonds

C : uing short-term debt

D : uing equity

Answer: D

Question 3

The process by which a central clearing corporation manages its credit risk is known as:?

A : rgining

B : tching

C : grating

D : turing

Answer: A

Question 4

What is the credit spread on a corporate bond?

A : increased size of the bid/ask spread in a trade price

B : difference in price between a corporate bond and a benchmark treasury

C : additional yield required by investors to offset the credit risk of the security

D : difference between the coupon rate of a corporate bond and the dividend of the issuing company

Answer: C

Question 5

Which of the following investments would be an example of a pooled investment?

A : posit made with a bank

B : rchase of shares

C : rchase of a mutual fund

D : rchase of an equity warrant

Answer: C

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Total 50 Questions | Updated On: Jan 08, 2025

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