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3I0-012 · Question #230

A CD with a face value of USD 50,000,000.00 and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss…

The correct answer is C. -USD 1,400.99. See the full explanation below for the reasoning.

Question

A CD with a face value of USD 50,000,000.00 and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

Options

  • A+USD 373,599.00
  • B+USD 186,099.00
  • C-USD 1,400.99
  • DNil

How the community answered

(33 responses)
  • A
    9% (3)
  • B
    3% (1)
  • C
    85% (28)
  • D
    3% (1)

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