Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 10 of 19
The rate used to discount a stripped Treasury bond payment is ______.
B. the current 90-day T-bill rate
C. the zero-coupon bond rate for a Treasury bond of the same maturity
A. the on-the-run Treasury yield for a bond of the same maturity
B. the current 90-day T-bill rate
C. the zero-coupon bond rate for a Treasury bond of the same maturity
User Contributed Comments 5
| User | Comment |
|---|---|
| zeiad | WHY C ?? BECAUSE OF ZERO-COUPON BOND |
| zkhan87 | bullet pymts = zero cpn rates |
| johntan1979 | The theoretical Treasury zero-coupon rates or Treasury spot rates |
| farhan92 | strip the coupons of the sexy thang |
| chesschh | strip to zero |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
identify the relationships among a bond's price, coupon rate, maturity, and yield-to-maturity
CFA® 2024 Level I Curriculum, Volume 4, Module 6.