If the CDS-bond basis is X minus Y,what are X and Y?
A) X is the CDS spread and Y is the excess of the bond yield over the swap rate
B) X is the excess of the bond yield over the swap rate and Y is the CDS spread
C) X is the CDS spread and Y is the excess of the bond yield over the Treasury rate
D) X is the excess of the bond yield over the Treasury rate and Y is the CDS spread

Question

Quizplus · Accepted Answer

The CDS-bond basis is the excess of the CDS spread over the bond yield spread.

If the CDS-Bond Basis Is X Minus Y,what Are X