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SAP Exam C_S4FTR_2023 Topic 5 Question 16 Discussion

Actual exam question for SAP's C_S4FTR_2023 exam
Question #: 16
Topic #: 5
[All C_S4FTR_2023 Questions]

You want to use the SOFR risk-free rate (RFR).For which product categories can parallel interest conditions be activated?Note: There are 2 correct answers to this question.

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Suggested Answer: B, D

The product categories that can activate parallel interest conditions for using the SOFR risk-free rate (RFR) are 040 - Bonds and 550 - Interest Rate Instrument. SOFR is one of the alternative risk-free rates (RFRs) that are replacing LIBOR as a benchmark interest rate for financial transactions. Parallel interest conditions are interest conditions that use different interest calculation methods or interest rates for the same financial transaction. You can activate parallel interest conditions for product categories 040 - Bonds and 550 - Interest Rate Instrument by using parallel shifts of yield curves or lookback interest calculation methods.


by Harrison at Sep 18, 2024, 07:08 AM

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Tomas
19 days ago
Ooh, this one's a tough one. I'm gonna go with B) Bonds and C) Cash Flow Transaction. Though I have to admit, I'm a little curious about what a 'Cash Flow Transaction' even is. Sounds like some kind of financial voodoo to me!
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Anika
20 days ago
Easy peasy! The answer is obviously B) Bonds and D) Interest Rate Instrument. I mean, come on, SOFR and interest rates? It's like peanut butter and jelly - they just go together!
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Winfred
25 days ago
Hmm, I'm leaning towards B) Bonds and D) Interest Rate Instrument. After all, SOFR is all about interest rates, so those choices seem like the logical picks.
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Lanie
27 days ago
This question is a tricky one! I'm pretty sure B) Bonds and C) Cash Flow Transaction are the right answers, but I'll have to double-check the details on SOFR.
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Antonio
6 days ago
A) 600 - FX Transaction
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Caitlin
1 months ago
I'm not sure about this. Can someone explain why those categories are the correct ones for activating parallel interest conditions?
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Jesusita
1 months ago
I agree with Ryan. Using SOFR RFR for Bonds and Interest Rate Instruments makes sense.
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Nikita
2 months ago
I think the correct answers are B) Bonds and D) Interest Rate Instrument. SOFR is a benchmark for interest rates, so it makes sense to apply it to those product categories.
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Bette
30 days ago
It's clear that those product categories align well with the use of the SOFR benchmark.
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Loreta
1 months ago
I would also go with B) Bonds and D) Interest Rate Instrument for activating parallel interest conditions.
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Christene
1 months ago
I think you're right, those categories are the most relevant for using the SOFR risk-free rate.
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Ma
1 months ago
I agree, B) Bonds and D) Interest Rate Instrument are the correct answers.
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Ryan
2 months ago
I think the correct answers are B) 040 - Bonds and D) 550 - Interest Rate Instrument.
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