- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 44. Introduction to Fixed-Income Valuation
- Subject 7. The Maturity Structure of Interest Rates
CFA Practice Question
A par curve is a sequence of yields-to-maturity in which ______
A. each bond's coupon rate is equal to its yield to maturity.
B. each bond's coupon rate is equal to the spot rate of its maturity.
C. each bond is priced at par value.
Explanation: The par curve is obtained from a spot curve.
User Contributed Comments 2
| User | Comment |
|---|---|
| jmliguori | A bond that has a coupon = YTM is priced at par. A and C mean the same thing. |
| peter2022 | No jmliguori. |