CFA Practice Question

There are 147 practice questions for this study session.

CFA Practice Question

The swap rate curve:

I. plots maturity (or length) of the swap against the fixed rate you will have to pay/receive if you enter into the swap.
II. is a default-free curve.
III. always trades through (above) the corresponding bond curve.
Correct Answer: I and III

It is not a default-free curve. Instead it is an inter-bank or AA rated curve.

User Contributed Comments 1

User Comment
Querdenker Well, most banks are down at Single A these days...
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