CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

For a floating-rate note, ______ is commonly used to measure its credit risk.

A. credit spread
B. discount margin
C. exposure yield
Correct Answer: B

The discount margin for floating rate notes is similar to the credit spread for fixed-coupon bonds. The discount margin can also be calculated using an arbitrage-free valuation framework.

User Contributed Comments 0

You need to log in first to add your comment.