The difference between the cash flow yield on a mortgage-backed security (MBS) and the yield on a Treasury with a maturity equal to the average life of the MBS is called the: A. Z-spread. B. static spread. C. nominal spread. D. zero-volatility spread.
The difference between the cash flow yield on an MBS and the yield on a Treasury with a maturity equal to the average life of the MBS is called the nominal spread.
