CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

For the purpose of deriving the yield curve, the yields on maturities with no on-the-run Treasuries are estimated ______.
A. from off-the-run Treasuries
B. through interpolation
C. from AAA rated corporate bonds

User Contributed Comments 3

User Comment
danlan Interpolation is used for the estimation.
iceluke the benchmark for tax-exempt securities are generic AAA obligation yield curves
xjarl Off-the-run issues are priced differently due to liquidity premium, and municipals and corporate bonds carry slight credit risk, so interpolation is best.
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