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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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Venita
5 days ago
Wait, are they really credit risk free? Seems too good to be true.
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Merlyn
10 days ago
Definitely B! That's how T-Bills work.
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Annamae
15 days ago
A Treasury Bill is bought at less than face value.
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Catarina
20 days 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
25 days 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
1 month 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
1 month 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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