问题
单项选择题
Which of the following is a limitation of the cash flow yield measure The cash flow yield measure:（）
A. uses a 360-day year.
B. assumes that the projected cash flows are reinvested at the cash flow yield.
C. assumes a flat yield curve.
答案
参考答案：B
解析：
Cash flow yield has two major deficiencies: (i) it is implicitly assumed that the cash flows will be reinvested at the cash flow yield prevailing when the MBS or ABS is priced, and (ii) it is assumed that the MBS or ABS will be held until maturity.