The option adjusted spread (OAS) of a callable bond is zero. Is it true that this callable's

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The option adjusted spread (OAS) of a callable bond is zero. Is it true that this callable's yield equals that of the noncallable counterpart? Explain your answer.

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Fixed Income Securities Valuation Risk and Risk Management

ISBN: 978-0470109106

1st edition

Authors: Pietro Veronesi

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Posted Date: Apr 08, 2024 11:58 AM

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The option adjusted spread (OAS) of a callable bond is zero. Is it true that this callable's

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Expert Answer:

No it is not necessarily true that a callable bond with a zero optionadjusted spread OAS has the sam... View the full answer

Fixed Income Securities Valuation Risk and Risk Management

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