Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 12 of 13
Bond A and B have similar characteristics and credit quality. The OAS for A is 10bps and the OSA for B is 20 bps. Which bond is likely to be overpriced if other things are assumed to be equal?
B. Bond B
C. We cannot draw a conclusion based on OAS.
A. Bond A
B. Bond B
C. We cannot draw a conclusion based on OAS.
User Contributed Comments 0
You need to log in first to add your comment.
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
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.