- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 3. Fixed-Income Issuance and Trading
- Subject 1. Fixed-Income Segments, Issuers, and Investors
CFA Practice Question
Which criterion influences which country's interest rates affect a bond's price?
B. Type of issuers
C. Currency denomination of the bond's cash flows
A. Credit quality
B. Type of issuers
C. Currency denomination of the bond's cash flows
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| philerup | What kind of horrible grammar is being used in this question? Can't understand it. |
| myronw | It's from the textbook. Quote: One of the critical ways to distinguish among fixed-income securities is by currency denomination. The currency denomination of the bond's cash flows influences which country's interest rates affect a bond's price. For example, if a bond is denominated in yen, its price will be primarily driven by the credit quality of the issuer and by Japanese interest rates. |