问题
单项选择题
The arbitrage-free bond valuation approach can best be described as the:（）
A. use of a single discount factor.
B. use of a series of spot interest rates that reflect the current term structure.
C. arithmetic average of the spot interest rates.
答案
参考答案：B
解析：
The use of multiple discount rates (i. e. , a series of spot rates that reflect the current term structure) will result in more accurate bond pricing and in so doing, will eliminate any meaningful arbitrage opportunities. That is why the use of a series of spot rates to discount bond cash flows is considered to be an arbitrage-free valuation procedure.