- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 6. Fixed-Income Bond Valuation: Prices and Yields
- Subject 3. Relationships between Bond Price and Bond Characteristics
CFA Practice Question
The rate used to discount a stripped Treasury bond payment is ______.
B. the current 90-day T-bill rate
C. the zero-coupon bond rate for a Treasury bond of the same maturity
A. the on-the-run Treasury yield for a bond of the same maturity
B. the current 90-day T-bill rate
C. the zero-coupon bond rate for a Treasury bond of the same maturity
Correct Answer: C
User Contributed Comments 5
| User | Comment |
|---|---|
| zeiad | WHY C ?? BECAUSE OF ZERO-COUPON BOND |
| zkhan87 | bullet pymts = zero cpn rates |
| johntan1979 | The theoretical Treasury zero-coupon rates or Treasury spot rates |
| farhan92 | strip the coupons of the sexy thang |
| chesschh | strip to zero |