交易管理测试题

Beta Company reported the following financial statement information:
December 31, 2006: 5%

Which of the following least likely represents a primary market offering? When bonds are sold:
A. in a private placement.
B. from a dealer's inventory.
C. on a best-efforts basis.  5%

 The coupon rate of a fixed income security is stated as 90-day LIBOR plus 125 basis points. This security is most accurately described as a(n):  5%
A. floating-rate note.
B. reference-rate note.
C. variable-rate note.

A bond has a par value of $5,000 and a coupon rate of 8.5% payable semi-annually. The bond is currently trading at 112.16. What is the dollar amount of the semi-annual coupon payment?  5%

A. $212.50.
B. $238.33.
C. $425.00

Which of the following embedded options in a fixed income security can be exercised by the issuer?  5%
A. Put option.
B. Conversion option.
C. Call option.

Which of the following statements about standard fixed rate government bonds with no optionality is TRUE？  5%
I..Higher coupon implies shorter duration.
II .Higher yield implies shorter duration.
III. Longer maturity implies larger convexity.
A. I and II only.
B. II and III only.
C. I and III only.
D. I，II，and III .

In managing a portfolio of domestic corporate bonds, which of the following risks is least important.  5%

A. Interest rate risks.
B. Concentration risks.
C. Spread risks.
D. Foreign exchange risks.

8. The annual incremental probability of default of a bond is 15% in year 1 and 20% in year 2. What is the probability of the bond surviving (i.e.no default) to the end of two years?  5%

A. 68%
B. 65%
C. 80%
D. 85%

Which of the following acts is not considered to be a money laundering offence?  5%

A. Dealing with any assets, knowing the property is proceeds of a crime.
B. Dealing with any assets, believing the property is proceeds of a crime.
C. Dealing with any assets, not knowing the property is proceeds of a crime.

When should a Suspicious Transaction Report (STR) be made to the Authorities when you deal with your customer? 5%

A. Whenever there are suspicious activity indicators making the transaction with the customer suspicious.
B. Whenever there are suspicious activity indicators and the transaction with the customer remains suspicious, after all the information has been reviewed and attempt to clarify the issues with the customer has failed.
C. For all transactions of US$1,000,000 and above.

Please list and explain the factors that may affect a bond’s price. 25%

Mr. Smith came to your office and asked to set up a trust for charitable purposes. The aim is to help poor children in Africa with their education. After the trust is formed, donations were received from overseas countries and money was sent to various African countries for building schools. A few months later, Mr. Smith instructed you to transfer US$100,000 to a personal bank account opened in a country known to be of a terrorist concern / under sanctions. Mr. Smith said that the money is to buy material to build schools in Africa.What should you do? 25%

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