Publisher's Synopsis
Option–adjusted spread (OAS) analysis is recognized as an invaluable tool for analyzing and comparing bonds with different structures. Starting with the fundamentals and progressing by easy steps, this compact guide––now updated and expanded with a section on estimating theoretical "fair value"––helps readers build a working knowledge of the limitations of tradition yield–based risk and return analysis, determining "option–free" price and yield, measuring a bond′s price sensitivity to changes in interest rates, and more.
