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Z Spreads in Callable Bonds Include

Question 23

Multiple Choice

Z spreads in Callable bonds include:


A) Does not include premium for credit risk and call option price for prepayment risk.
B) Premium for credit risk and call option price for prepayment risk in included.
C) Premium for credit risk is only included.
D) Premium for call option price for prepayment risk os only included.

Correct Answer:

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