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Basic Question 7 of 13
A spot rate is defined as:
B. the rate earned by a coupon-paying bond currently.
C. the base rate earned on a floating security.
A. the rate earned on a zero-coupon bond for its time to maturity.
B. the rate earned by a coupon-paying bond currently.
C. the base rate earned on a floating security.
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe relationships among spot rates, forward rates, yield to maturity, expected and realized returns on bonds, and the shape of the yield curve;
describe how zero-coupon rates (spot rates) may be obtained from the par curve by bootstrapping;
CFA® 2025 Level II Curriculum, Volume 4, Module 26.