CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

The rate used to discount a stripped Treasury bond payment is ______.

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
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