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Basic Question 5 of 14

The zero-volatility spread is a better measure than the G spread because ______

A. the G spread is not an effective spread measure.
B. the G spread is only a one-point estimate whereas the z-spread considers the whole yield curve.
C. the Z spread adjusts for inflation while G spread does not, and the Z spread is a simpler measure to calculate.

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

compare, calculate, and interpret yield and yield spread measures for fixed-rate bonds

CFA® 2024 Level I Curriculum, Volume 4, Module 7.