CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

The zero-volatility spread is a better measure than the G spread because ______

A. the G spread is not an effective spread measure.
B. the G spread is only a one-point estimate whereas the z-spread considers the whole yield curve.
C. the Z spread adjusts for inflation while G spread does not, and the Z spread is a simpler measure to calculate.
Correct Answer: B

The Z spread is a better measure than the G spread because the G spread is only a one-point estimate whereas the Z spread considers the whole yield curve.

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