Z- Spread Assignment | Homework For You
June 8th, 2020
the constant basis point spread added to the default- free spotcurve to correctly price a risky bond. | ||
A Z- spread of 100bps for a particularbond would imply that adding a fixed spread of 100bps to the points along thespot yield curve will correctly price the bond | ||
A higher Z- spread would imply ariskier bond. | ||
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