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3I0-012 · Question #1

A CD with a face value of EUR 10,000,000.00 and a coupon of 3% was issued at par for 182 days and is now trading at 3.10% with 120 days remaining to maturity. What has been the capital gain or loss…

The correct answer is C. -EUR 3,827.67. See the full explanation below for the reasoning.

Question

A CD with a face value of EUR 10,000,000.00 and a coupon of 3% was issued at par for 182 days and is now trading at 3.10% with 120 days remaining to maturity. What has been the capital gain or loss since issue?

Options

  • A-EUR 52,161.00
  • B-t-EUR 47,839.00
  • C-EUR 3,827.67
  • DNil

How the community answered

(28 responses)
  • A
    4% (1)
  • B
    4% (1)
  • C
    86% (24)
  • D
    7% (2)

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