- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 28. 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 spot rate curve is unchanged, then each bond earns the:
C. future spot rate.
A. forward rate. B. spot rate.
C. future spot rate.
Correct Answer: A
Each bond rolls down the spot rate curve and earns the forward rate that rolls out of its pricing.
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