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Basic Question 10 of 12

Which spread uses the implied spot yield curve?

A. Z spread
B. Swap spread
C. Ted spread

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Craig Baugh

Craig Baugh

Learning Outcome Statements

explain the swap rate curve and why and how market participants use it in valuation;

calculate and interpret the swap spread for a given maturity;

describe short-term interest rate spreads used to gauge economy-wide credit risk and liquidity risk;

CFA® 2025 Level II Curriculum, Volume 4, Module 26.