- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 44. Introduction to Fixed-Income Valuation
- Subject 6. Yield Measures for Floating-Rate Notes and Money Market Instruments
CFA Practice Question
On each coupon rate reset date of a floater, which of the following does NOT change?
A. Reference rate
B. Quoted margin
C. Required margin
Explanation: The reference rate may change when market interest rates fluctuate. The required margin may change due to changes in the issuer's credit risk, liquidity, tax status, etc. The quoted margin remains the same.
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