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Basic Question 4 of 13

What is the nominal spread for the bond in the table below?

A. 120 basis points
B. 200 basis points
C. 140 basis points

User Contributed Comments 2

User Comment
danlan It's not the difference between coupon rate, but the difference between YTM
Oarona Thanks Danlan
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

explain the calculation and use of option-adjusted spreads;

explain how interest rate volatility affects option-adjusted spreads;

CFA® 2025 Level II Curriculum, Volume 4, Module 28.