IAmNeil

Hi All,
A follow up question (man, fixed income is not my thing!):
p.315 in CFA FI book:
“Exhibit 12 shows the adjusted tree by shifting the yield curve up by…25bps, and then adding 35 bps (the OAS) to each 1yr rate”
The Yr 3 NHHH rate is 9.8946%. How do you get this? 9.8946%-35bps = 9.5446. But this is not w/in 25bps of the original bond. How do you adjust for the shift of 25bps?
Thanks All.