| g3r41d, so if you compute the OAS on an already option-free bond, you’ll get the Z spread, correct? If the bond is callable, its market price is lower than a non callable bond, b/c it has some strings attached, i.e., the issuer can take it away from you. So, a callable bond will have an OAS which is larger than a non callable bond…? If puttable, then OAS is smaller? |
发表于 2013-4-19 23:39
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