CFA Practice Question
Which of the following is most likely incorrect?
A. The Nominal Spread does not account for term structure of interest rates.
B. The difference between the nominal spread and Z-spread is larger when the yield curve is steeply sloped.
C. OAS (Option Adjusted Spread) is independent on the model used to calculate the spread.
Explanation: OAS (Option Adjusted Spread) is dependent on the model used to calculate the spread.
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