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.
老师请问，这题premium有数值的只有两个: Term Premium=100 bps, Liquidity Premium=10 bps, 其他的premium没有具体的数值，所以只能说dominant source 是Term Premium, 是这样的解题思路吗？还需要从题干的其他信息进行判断吗？
“and the yield spread between 2-year and 10-year XYZ bonds is 100 bps.”
“the yield spread between three-year sovereign bonds and the next highest-quality government agency bond widened by 10 bps.”
