ACI
3I0-012 · Question #523
When performing a gap analysis, into which of the following time buckets should a 5-year floating- rate note with a 6-month LIBOR coupon be slotted?
The correct answer is A. the 6-month bucket. See the full explanation below for the reasoning.
Question
When performing a gap analysis, into which of the following time buckets should a 5-year floating- rate note with a 6-month LIBOR coupon be slotted?
Options
- Athe 6-month bucket
- Bthe 2.5-year bucket
- Cthe 5-year bucket
- DIt should be weighted and apportioned in each of the time buckets in accord with the periodic coupon payments.
How the community answered
(30 responses)- A80% (24)
- B3% (1)
- C7% (2)
- D10% (3)
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