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#bonds #finance #yield-to-maturity #z-spread

The Z-spread of a bond is the number of basis points one needs to add to the Treasury spot rates yield curve, so that the NPV of the bond cash flows (using the adjusted yield curve) equals the market price of the bond (after accounting for accrued interest).

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**Z-spread - Wikipedia, the free encyclopedia**

yield curve the sum of their values will tend to overestimate the market price of the MBS. The parallel shift, which, if applied to the yield curve makes the NPV of the anticipated receipts equal to the market price is the Yield curve spread. <span>The Z-spread of a bond is the number of basis points one needs to add to the Treasury spot rates yield curve, so that the NPV of the bond cash flows (using the adjusted yield curve) equals the market price of the bond (after accounting for accrued interest). The spread is calculated iteratively and improves the accuracy of the value calculation as it uses the entire yield curve to value the cash flows. If you calculate the present value of a

yield curve the sum of their values will tend to overestimate the market price of the MBS. The parallel shift, which, if applied to the yield curve makes the NPV of the anticipated receipts equal to the market price is the Yield curve spread. <span>The Z-spread of a bond is the number of basis points one needs to add to the Treasury spot rates yield curve, so that the NPV of the bond cash flows (using the adjusted yield curve) equals the market price of the bond (after accounting for accrued interest). The spread is calculated iteratively and improves the accuracy of the value calculation as it uses the entire yield curve to value the cash flows. If you calculate the present value of a

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