- CFA Exams
- CFA Level I Exam
- Study Session 12. Fixed Income (1)
- Reading 32. The Term Structure and Interest Rate Dynamics
- Subject 4. The Swap Curve (LIBOR Curve)
CFA Practice Question
Which statement is TRUE?
A. The swap rate is always greater than the corresponding T-note rate.
B. The swap spread is sometimes negative.
C. The swap curve is based on the implied spot yield curve.
Explanation: Statement A is usually but not always true. The swap curve is based on the YTM curve.
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