- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 8. Yield and Yield Spread Measures for Floating-Rate Instruments
- Subject 1. Yield and Yield Spread Measures for Floating-Rate Notes
CFA Practice Question
The role of the quoted margin is to compensate the investor for the ______.
B. market interest rate risk
C. difference in the credit risk of the issuer and that implied by the reference rate
A. credit risk of the issuer
B. market interest rate risk
C. difference in the credit risk of the issuer and that implied by the reference rate
Correct Answer: C
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