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

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?
C) VARIABLE at LIBOR + 1.0%
A) VARIABLE at LIBOR
B) VARIABLE at LIBOR + 0.5%
D) FIXED at 6.5%

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?

Show Suggested Answer Hide Answer
Suggested Answer: C

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

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Chandra
9 months ago
Seems risky to go variable with rates rising.
upvoted 0 times
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Dahlia
9 months ago
Wait, how does that swap rate work again?
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Roy
9 months ago
I think it’s LIBOR + 1.0% actually.
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Ty
9 months ago
Definitely going to be LIBOR + 0.5%!
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Ines
9 months ago
The company will have a variable rate now.
upvoted 0 times
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Enola
10 months ago
Hmm, this one looks tricky. I'll need to carefully analyze the SNORT alert to determine the type of attack.
upvoted 0 times
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Trina
10 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".
upvoted 0 times
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Corinne
10 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.
upvoted 0 times
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Francisca
10 months ago
Hmm, this looks tricky. 403 means access is blocked, but is that definitely a permission problem or could it be something deeper?
upvoted 0 times
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