- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 44. Introduction to Fixed-Income Valuation
- Subject 6. Yield Measures for Floating-Rate Notes and Money Market Instruments
CFA Practice Question
With a fixed-rate bond, interest rate volatility affects its ______.
B. future coupon payments
C. principal payment
A. bond price
B. future coupon payments
C. principal payment
Correct Answer: A
Both B and C are fixed. However, with a floating-rate note, interest rate volatility affects future coupon payments.
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