- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 6. Fixed-Income Bond Valuation: Prices and Yields
- Subject 4. Matrix Pricing
CFA Practice Question
Matrix prices are based on quoted prices for bonds with similar ______.
II. ratings
III. maturities
I. coupons
II. ratings
III. maturities
Correct Answer: I, II and III
Matrix pricing is used to value illiquid bonds by using prices and yields on comparable securities having the same or similar credit risks, coupon rates and maturities.
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