medium · Debt Capital Markets pricing-yields-curve
An investor enters an asset swap by purchasing a fixed-rate bond at 102.00 and swapping it to floating.
If the bond's coupon is 5.00% and the par swap rate is 4.00%, what is the primary driver of the asset-swap spread?
- The combination of the credit spread over the swap curve and the amortization of the 2.00 point premium.
- The liquidity premium of the on-the-run government bond.
- The 1.00% difference between the coupon and the par swap rate only.
- The movement in Treasury yields since the bond was issued.
Sign up free to see the explanation and track your rank →
More Debt Capital Markets pricing-yields-curve practice
- For a bond trading at a discount (below par), which yield measure is typically the same as
- If a bond's Yield to Worst is equal to its Yield to Maturity, what can we likely conclude
- If an issuer decides *not* to call a bond on the first call date even though it is economi
- If a bond's YTW is significantly lower than its YTM, the bond is likely trading at a:
- For a bond with several call dates at different prices, the Yield to Worst is:
- The concept of 'Pull to Par' describes the price convergence… — Which yield measure inhere
- If an investor buys a bond with a 5% coupon at a price of 102, how does the Yield to Matur
- A bond's yield to maturity (YTM) is 7%, but its current yiel… — What does this suggest abo