The Term Structure of Interest Rates: Spot, Par, and Forward Curves sample question
Choose an answer before revealing the explanation, key takeaway, and answer-choice review.
Question 1 of 1Score 0/1
CFA Level I sample question
CFA Level I The Term Structure of Interest Rates: Spot, Par, and Forward Curves question
Fixed Income / 9. The Term Structure of Interest Rates: Spot, Par, and Forward Curves
Fixed Income
9. The Term Structure of Interest Rates: Spot, Par, and Forward Curves
A 2-year annual-pay bond has a 5.0% coupon and par value of 1,000. The 1-year spot rate is 4.0%, and the 2-year spot rate is 5.0%. The bond's price is closest to:
Report an issue
Get one CFA Level I question by email
Receive a weekly practice question with answer-choice explanations and a short takeaway.