- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 9. The Term Structure of Interest Rates: Spot, Par, and Forward Curves
- Subject 1. Maturity Structure of Interest Rates and Spot Rates
CFA Practice Question
The Treasury par curve is named because ______
B. spot rates cannot be calculated at non-par values.
C. on-the-run Treasuries are coupon-adjusted to sell at par.
A. Treasuries are only sold at par.
B. spot rates cannot be calculated at non-par values.
C. on-the-run Treasuries are coupon-adjusted to sell at par.
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| ehc0791 | Can some one explain how the OTR treasuries are coupon-adjusted to par ? I work in fixed income for 5 years, the all the risk calculation is done on swap curve which is par but not in treasury credit. |
| hoyleng | check out the OTR defination. hope it helps. |