- CFA Exams
- CFA Level I Exam
- Study Session 12. Equity Investments (1)
- Reading 37. Security Market Indices
- Subject 4. Different Types of Security Market Indices
CFA Practice Question
Which of the following most accurately describes the computation of nearly all bond market indices, U.S. and global?
A. Model-priced
B. Trader-priced
C. Market-priced
Explanation: 11 out of the 12 major bond indexes are trader-priced and only one index (Ryan Treasury) is market-priced. Two other indices, Barclays Capital Aggregate Bond Index and Merrill Lynch, are both trader-priced and model-priced.
User Contributed Comments 4
| User | Comment |
|---|---|
| tomalot | All legacy Lehman Brothers benchmark indices were rebranded as Barclays Capital Indices in November 2008. |
| silvia1990 | I think so. That's what it states in the CFA book. |
| alexchav | Many index funds and exchange-traded funds attempt to replicate (before fees and expenses) the performance of the Barclays Capital Aggregate Bond Index. |
| khalifa92 | where did the CFA book state these or was it changed once again? |