An MRI-compatible implantable medical lead includes two electrodes coupled to a distal end of the lead, two matching electrode terminals coupled to a proximal end and a lead body in the form of an outer insulating tubing running from the distal end to the proximal end. A coaxial conductor assembly is arranged in a bore of the outer insulating tubing and comprises an inner conductor, an outer conductor and an inner insulating tubing arranged between the inner and outer conductors. A capacitor is arranged between the inner conductor and the outer conductor at a distance from the distal end defined based on the magnetic field strength of the MRI system with which the lead is compatible.