CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

The assumed reinvestment rate for the yield on a zero coupon bond is ______.
A. the market rate
B. the current yield
C. none
Explanation: Since a zero-coupon bond does not pay any coupon payments there is no assumption of a reinvestment rate.

User Contributed Comments 3

User Comment
danlan Note: zero coupon bond.
guna No Coupon, No reinvestment risk
lazio simple, but good question
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