- CFA Exams
- CFA Exam: Level II 2021
- 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
The Treasury curves are different from swap curves because of differences in:
II. market liquidity.
III. arbitrage activities.
I. credit risks.
II. market liquidity.
III. arbitrage activities.
Correct Answer: I, II and III
They can differ because of differences in their credit exposures, liquidity, and other supply/demand factors.
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