NO.PZ202105270100000405
问题如下：
Based on the building block approach to fixed-income returns, the dominant source of the yield spread for Country XYZ is most likely the:
选项：
A.term premium. B.credit premium. C.liquidity premium.解释：
A is correct. From the building block approach to fixed-income returns, the required return for fixed-income asset classes has four components: the one-period default-free rate, the term premium, the credit premium, and the liquidity premium. Since sovereign bonds are considered the highest-quality bonds, they likely do not have a significant credit premium nor are they likely to have a significant premium for illiquidity. The slope of the yield curve is useful information on which to base forecasts of the term premium. Therefore, the dominant source of the yield spread is most likely the term premium for XYZ’s sovereign bond.
In addition to expected monetary actions that will raise short-term rates, the yield spread between three-year sovereign bonds and the next highest-quality government agency bond widened by 10 bps.这句话里面的next highest-quality government agency bond指的是什么期限呢？
