Home > Glossary > Zero-Volatility Spread - Z-spread
Meaning / Definition of
Zero-Volatility Spread - Z-spread
Categories: Finance,
The constant spread that will make the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate treasury curve where a cash flow is received . In other words, each cash flow is discounted at the appropriate Treasury spot rate plus the Z-spread. The Z-spread is also known as a "static spread".
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