Exam style questions across every 8006 domain
Last Update 2 days ago
Total Questions : 287
Start with our free 8006 practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real PRM Certification exam. Each 8006 exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your PRMIA weak domains, see where you're losing marks, and build a focused study plan in minutes.
Which of the following is an example of a multifactor model explaining expected asset returns:
I. Arbitrage pricing theory
II. Single index model
III. Capital asset pricing model
Which of the following statements are true:
I. The convexity of a zero coupon bond maturing in 10 years is more than that of a 4% coupon bond with a modified duration of 10 years
II. The convexity of a bond increases in a linear fashion as its duration is increased
III. Convexity is always positive for long bond positions
IV. The convexity of a zero coupon bond maturing in 10 years is less than that of a 4% coupon bond maturing in 10 years
What is the yield to maturity for a 5% annual coupon bond trading at par? The bond matures in 10 years.
If the zero coupon spot rate for 3 years is 5% and the same rate for 2 years is 4%, what is the forward rate from year 2 to year 3?
Security A and B both have expected returns of 10%, but the standard deviation of Security A is 10% while that of security B is 20%. Borrowings are not permitted. A portfolio manager who wishes to maximize his probability of earning a 25% return during the year should invest in:
If zero rates with continuous compounding for 4 and 5 years are 4% and 5% respectively, what is the forward rate for year 5?
If the exchange rate for USD/AUD is 0.6831 and the rate for SEK/USD is 8.1329, what is the SEK/AUD cross rate?
Which of the following statements are true:
I. The swap rate, also called the swap spread, is initially calculated so that the value of the swap at inception is zero.
II. The value of a swap at initiation is different from zero and is equal to the difference between the NPV of the cash flows of the two legs of the swap
III. OTC swaps are standardized and limited to a defined set of standard contracts
IV. Interest rate and commodity swaps are the types of swaps that are most traded
What is the running yield on a 6% coupon bond selling at a clean price of $96?
