- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 2. Fixed-Income Cash Flows and Types
- Subject 2. Fixed-Income Contingency Provisions
CFA Practice Question
In 2005, the Italian government issued 15-year floaters with a coupon rate equivalent to 85% of the 10-year constant maturity swap rate. What type of structured financial instrument is it? A. Yield enhancement instrument
B. Participation instrument
C. Leveraged instrument
Correct Answer: B
This floater gave investors the opportunity to "tie" their returns to the movement of the 10-year constant maturity swap rate.
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