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Advanced Wealth Management Course (IIBF) - Paper 3
Part II:Ch 8: commercial Paper and Certificates of Deposit
Q1.
The maturity of CPs varies between:
Q2.
CPs can be issued in denomination of ;
Q3.
The eligibility of an issuer can issue CPs if, the company should have a minimum tangible net worth of not less than __________.
Q4.
A Corporate issues a CP at an effective rate of 7.00% for 90days. Assume that the face value is Rs. 100. CPs are discounted instruments, the issuing company gets a price that is the discounted price. What would be the discounted price?
Q5.
XYZ Limited wishes to issue CPs, each with a face value of Rs. 5, 00,000 for a period of 90 days. What will be the issue price of the CP, if the rate of interest is 6%?
Q6.
The factor/s that influence the pricing of the CPs is/are:
Q7.
(I) A Certificate of Deposit (CD) is a negotiable money market instrument. (II) Secondary transactions of CP do not attract any stamp duty.
Q8.
Banks can issue CDs from __________ to _________ maturity.
Q9.
DFIs can issue CDs with an initial maturity of ________ to ___________.
Q10.
The minimum issue size of a CD issued to a single investor is:
Q11.
XYZ limited wishes to issue CPs each of Rs. 5, 00,000 for a period of 180 days at an interest cost not exceeding 6.5%. XYZ Ltd is advised that its CPs would fine buyers at a discounted price of Rs. 4, 85,000. What would be the yield and will XYZ Ltd go ahead with the issue?
Q12.
(I) CDs have to be compulsorily issued in the dematerialized form. (II) CPs are an unsecured form of borrowing.
Q13.
The stamp duty for issue of CPs to banks and Financial Institutions for 3-6 months maturity is:
Q14.
The stamp duty for issue of CDs by banks for 181-364days maturity is:
Q15.
The stamp duty for issue of CDs by FIs for above 1 year maturity of Non-bank is:

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