CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

A corporate bond quote of "zr 24" following the name of the issuer in The Wall Street Journal signifies that ______
A. the bond is trading "flat" and matures in 2024.
B. the coupon rate on the bond is 4%.
C. the quote is of a zero-coupon bond.
Explanation: The bond in this question is a zero-coupon (zr) bond that matures in 2024 (24). Such a bond would sell at a deep discount from par value. There would be no yield reported in the The Wall Street Journal because the coupon rate is zero.

User Contributed Comments 0

You need to log in first to add your comment.