- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 29. Credit Analysis Models
- Subject 5. Interpreting Changes in Credit Spreads
CFA Practice Question
Benchmark bond yields capture factors such as:
II. taxation
III. expected real rate of return
IV. compensation for uncertainty regarding expected inflation
V. liquidity
I. expected inflation rate
II. taxation
III. expected real rate of return
IV. compensation for uncertainty regarding expected inflation
V. liquidity
Correct Answer: I, III and IV
They capture macroeconomic factors. The other two are captured by credit spreads.
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