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Basic Question 3 of 9

The role of the quoted margin is to compensate the investor for the ______.

A. credit risk of the issuer
B. market interest rate risk
C. difference in the credit risk of the issuer and that implied by the reference rate

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

calculate and interpret yield spread measures for floating-rate instruments

CFA® 2024 Level I Curriculum, Volume 4, Module 8.