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Basic Question 8 of 12
Retail banks are MOST LIKELY to use the ______ to value their own assets and liabilities.
B. Treasury spot curve
C. Swap curve
A. Treasury yield curve
B. Treasury spot curve
C. Swap curve
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Learning Outcome Statements
explain the swap rate curve and why and how market participants use it in valuation;
calculate and interpret the swap spread for a given maturity;
describe short-term interest rate spreads used to gauge economy-wide credit risk and liquidity risk;
CFA® 2025 Level II Curriculum, Volume 4, Module 26.