Z-spread, zero-volatility spread (for the @CFA Level 1 exam) explores the valuation of a corporate bond, given a set of benchmark spot rates and a Z-spread.
what if the z spread is not provided and all the other values are provided, is there a way to find this fixed z spread value putting it as an unknown value of x, using this calculator?
Hi, it would be possible from a mathematical point of view, but difficult to compute. Its not something the Texas Instruments BA II Plus could handle for you and not something you should be expected to do on the exam :)
Hi, that option value is irrelevant for this question. It does however become relevant for the follow-on question on OAS. Please watch that one and you’ll see why😀
