ACI
3I0-012 · Question #591
3I0-012 Question #591: Real Exam Question with Answer & Explanation
The correct answer is A. Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate. See the full explanation below for the reasoning.
Question
If a broker refers to "the payer of 5-year euro at 4.12", what is this party doing?
Options
- APaying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate
- BPaying a fixed rate of 4.12% per annum on an actual/actual basis over 5 years in euros through an interest
- CPaying a 5-year euro deposit and receiving a rate of interest of 4.12% on an actual/360 basis.
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