- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 5. Fixed-Income Markets for Government Issuers
- Subject 1. Sovereign Bonds
CFA Practice Question
Which statement is correct?
B. The yield of an on-the-run T-bond is the same as that of its off-the-run counterparts.
C. The yield of an on-the-run T-bond is a little more than that of its off-the-run counterparts.
A. The yield of an on-the-run T-bond is a little less than that of its off-the-run counterparts.
B. The yield of an on-the-run T-bond is the same as that of its off-the-run counterparts.
C. The yield of an on-the-run T-bond is a little more than that of its off-the-run counterparts.
Correct Answer: A
An on-the-run issue is the most recently issued one for a given maturity. It is the most liquid issue and its yield is the lower than that of its off-the-run counterparts.
User Contributed Comments 3
| User | Comment |
|---|---|
| maryprz14 | closer to maturity, less volatile, higher yield. |
| khalifa92 | more liquid, less risk, lower yield. |
| kingirm | Why so ? |