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Find the OAS of a 3 year callable bond trading at 99.337. Assume the bond pays an annual coupon of 5.2%, and is callable at
Find the OAS of a 3 year callable bond trading at 99.337. Assume the bond pays an annual coupon of 5.2%, and is callable at 101.5 at the end of each year. Assume current 1 year rates are 4.7%, and we expect them to go up or down by 0.6% each year with equal probability. (Provide your answer in basis points, rounded to the nearest basis point.) Find the OAS of a 3 year callable bond trading at 99.337. Assume the bond pays an annual coupon of 5.2%, and is callable at 101.5 at the end of each year. Assume current 1 year rates are 4.7%, and we expect them to go up or down by 0.6% each year with equal probability. (Provide your answer in basis points, rounded to the nearest basis point.)
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