CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

The Z-spread is different from the nominal spread because
A. The nominal spread uses the spot rates which are purely theoretical.
B. The Z-spread is based on direct YTM calculations.
C. The Z-spread is based on a premium above the spot rates which are a period by period rate determination.
Explanation: The nominal spread is the spread over the exact interpolated point on the Treasury curve.

User Contributed Comments 1

User Comment
Xocrevilo Z-spead: multi-timeframe. Nominal spread: not.
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