Solved

An Option-Adjusted Spread (OAS) on a Callable Bond Is the Z-Spread

Question 31

Multiple Choice

An option-adjusted spread (oAS) on a callable bond is the Z-spread:


A) over the benchmark spot curve.
B) minus the standard swap rate in that currency of the same tenor.
C) minus the value of the embedded call option expressed in basis points per year.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions