An active manager is weighing the purchase of two callable bonds with similar credit risks and the
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An active manager is weighing the purchase of two callable bonds with similar credit risks and the same final maturity. Which of the two bonds is more likely to be called on the next call date?
A. The bond with the lower ASW
B. The bond with the lower Z-spread
C. The bond with the lower OAS
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The correct answer is C The OAS measure is best suited to compare the impact of e...View the full answer
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