The Z-Spread, or Zero Volatility Spread, is the constant spread that, when added to the yield of each point on the risk-free spot rate curve, mathematical discounts the cash flows of a security to its present market value.
Understand the Option-Adjusted Spread (OAS) in fixed-income investments, its calculation, significance, and practical applications. Learn how OAS helps in comparing yields of different fixed-income securities with embedded options.
