- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 26. The Term Structure and Interest Rate Dynamics
- Subject 2. Yield Curve Movement, Forward Curve and Rolling Down the Yield Curve
CFA Practice Question
If the prevailing spot yield curve after one period is the current forward curve, the total return on the bond is the:
B. r(T-1)
C. r(1)
A. f(1,1)
B. r(T-1)
C. r(1)
Correct Answer: C
It is the one-period risk-free rate.
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