CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Which statement is correct?

A. The yield of an on-the-run T-bond is a little less than that of its off-the-run counterparts.
B. The yield of an on-the-run T-bond is the same as that of its off-the-run counterparts.
C. The yield of an on-the-run T-bond is a little more than that of its off-the-run counterparts.
Correct Answer: A

An on-the-run issue is the most recently issued one for a given maturity. It is the most liquid issue and its yield is the lower than that of its off-the-run counterparts.

User Contributed Comments 3

User Comment
maryprz14 closer to maturity, less volatile, higher yield.
khalifa92 more liquid, less risk, lower yield.
kingirm Why so ?
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