CIMAPRA19-F03-1 Exam - Topic 1 Question 13 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 13
Topic #: 1

[All CIMAPRA19-F03-1 Questions]

A company has some 7% coupon bonds in issue and wishes tochangeitsinterest rate profile.

It has decided to do this by entering into a plain coupon interest rate swap with it's bank.

The bank has quoted a swap rate of: 6.0% - 6.5% fixed against LIBOR.

What will the company'snew interest rate profilebe?

AVARIABLE at LIBOR

BVARIABLE at LIBOR + 0.5%

CVARIABLE at LIBOR + 1.0%

DFIXED at 6.5%

Show Suggested Answer

Suggested Answer: C

by Melodie at May 09, 2022, 07:49 PM

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Chandra

5 months ago

Seems risky to go variable with rates rising.

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Dahlia

6 months ago

Wait, how does that swap rate work again?

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Roy

6 months ago

I think it’s LIBOR + 1.0% actually.

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Ty

6 months ago

Definitely going to be LIBOR + 0.5%!

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Ines

6 months ago

The company will have a variable rate now.

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Enola

6 months ago

Hmm, this one looks tricky. I'll need to carefully analyze the SNORT alert to determine the type of attack.

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Trina

6 months ago

The question is asking about the module used to create Case Record Producers, so I think the correct answer is option C, "Record Producers".

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Corinne

6 months ago

Wait, I'm a bit confused. I know RORO ships can carry some containers, but are they really "specifically designed" for that? I'll have to double-check my notes to be sure.

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Francisca

7 months ago

Hmm, this looks tricky. 403 means access is blocked, but is that definitely a permission problem or could it be something deeper?

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