The Yield Spread of a Specific Bond Over the Standard

question 8

Multiple Choice

The yield spread of a specific bond over the standard swap rate in that currency of the same tenor is best described as the:

• A) I-spread.
• B) Z-spread.
• C) G-spread.

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Definitions:

Research Assistant

An individual who provides administrative or technical support to professionals conducting scientific studies, often helping with data collection and analysis.

Internal Validity

The extent to which a study can rule out or make unlikely alternative explanations of the results, indicating that the causal relationship being tested is trustworthy.

Construct Validity

The degree to which a test or instrument accurately measures the theoretical construct it is intended to measure.

Low Construct Validity

When a test or tool does not accurately measure the theoretical concept it is intended to measure.