Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
The yield spread over an interpolated sovereign bond is best described as a(n):
A
I-spread, which represents the yield spread of a specific bond over the standard swap rate in the same currency and tenor.
B
G-spread, which denotes the yield spread in basis points over an actual or interpolated government bond, reflecting compensation for credit, liquidity, and other risks relative to the sovereign bond.
C
Z-spread, which is a constant yield spread over a government or interest rate swap curve, also known as the zero-volatility spread.
