- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 44. Introduction to Fixed-Income Valuation
- Subject 1. Bond Prices and the Time Value of Money
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 |