CFA Practice Question

There are 147 practice questions for this study session.

CFA Practice Question

The swap curve plots maturity (or length) of the swap against the fixed rate you will have to pay/receive if you enter into the swap. The swap spread primarily reflects:

A. liquidity risk.
B. credit risk.
C. interest rate risk.
Correct Answer: B

It reflects the risk of the counterparty to the swap failing to satisfy its obligations.

User Contributed Comments 0

You need to log in first to add your comment.