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ICMA FMFQ Exam - Topic 4 Question 96 Discussion

You purchase a USD Treasury Bill. Which of the following sentences best describes the trade you have done?
B) You have purchased a credit risk free security for which you have paid less than face value and will receive at maturity face value
A) You have purchased a credit risk free security for which you have paid face value and will receive at maturity face value plus accrued interest
C) You have purchased an interest rate risk free security for which you have paid face value and will receive at maturity face value plus accrued interest
D) You have purchased an interest rate risk free security for which you have paid less than face value and will receive at maturity face value

ICMA FMFQ Exam - Topic 4 Question 96 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 96
Topic #: 4
[All FMFQ Questions]

You purchase a USD Treasury Bill. Which of the following sentences best describes the trade you have done?

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Suggested Answer: B

by William at May 29, 2026, 07:24 AM

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Gabriele
3 days ago
I still feel unsure about the wording.
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Laquanda
8 days ago
Exactly! It's a safe investment.
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Jodi
14 days ago
Right, B is clear. You get face value at maturity.
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Geraldo
19 days ago
A is misleading. T-bills don’t pay interest like that.
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Gabriele
24 days ago
But what about A? It mentions accrued interest.
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Laquanda
29 days ago
I agree, B makes sense. It's a T-bill.
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Jodi
1 month ago
I think the answer is B. You pay less than face value.
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Providencia
1 month ago
I agree with B, but I’m not sure about the "credit risk free" part.
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Alpha
1 month ago
I thought they paid interest too, but I guess it's just face value at maturity?
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Venita
2 months ago
Wait, are they really credit risk free? Seems too good to be true.
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Merlyn
2 months ago
Definitely B! That's how T-Bills work.
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Annamae
2 months ago
A Treasury Bill is bought at less than face value.
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Catarina
2 months ago
I recall that T-Bills are indeed sold at a discount, so that makes me think it's B or D. But I need to double-check what "interest rate risk-free" means in this context.
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Farrah
2 months ago
I’m a bit confused. I thought T-Bills were risk-free, but I'm not clear on whether they are interest rate risk-free or credit risk-free. Could it be A?
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Jess
3 months ago
I practiced a similar question, and I believe the key is that T-Bills don't pay interest like bonds do. So, I’m leaning towards D since it mentions paying less than face value.
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Coleen
3 months ago
I think I remember that Treasury Bills are sold at a discount, so maybe it's B or D? But I'm not sure about the interest part.
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