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LOS b: Evaluate the importance of the benchmark interest rates in interpreting spread measures.
Q1. Which of the following benchmarks would generate the greatest spread when used to examine a bond yield?
A) Bond sector benchmark.
B) The issuer of a specific company.
C) A U.S. Treasury security.
Q2. Which of the following spreads will reflect the option risk in a callable bond?
A) Both the nominal spread and the Z-spread.
B) The Z-spread only.
C) The OAS only.
Q3. The use of which of the following benchmarks to generate a spread would not reflect credit risk?
A) A U.S. Treasury benchmark.
B) A global industry-yield benchmark.
C) An issuer-specific benchmark. | 
发表于 2009-3-18 17:05
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