ICMA FMFQ Exam - Topic 2 Question 93 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 93
Topic #: 2

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

AYou have purchased a credit risk free security for which you have paid face value and will receive at maturity face value plus accrued interest

BYou have purchased a credit risk free security for which you have paid less than face value and will receive at maturity face value

CYou 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

DYou have purchased an interest rate risk free security for which you have paid less than face value and will receive at maturity face value

Show Suggested Answer

Suggested Answer: B

by Gabriele at Apr 11, 2026, 12:26 PM

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Francoise

12 days ago

I’m confused about the interest part. I thought T-Bills just return the face value at maturity without any accrued interest.

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Elsa

17 days ago

I think option B sounds right because it mentions being credit risk free and paying less than face value, which aligns with what I practiced.

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Yuette

22 days ago

I'm not entirely sure, but I feel like the interest part is tricky. I thought T-Bills don't pay interest like regular bonds?

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Precious

28 days ago

I remember studying that Treasury Bills are sold at a discount, so I think we pay less than face value.

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