One of the most commonly used yield spread measures is the nominal spread. Which of the following is a limitation of nominal spread The nominal spread assumes:（）
A. an upward sloping yield curve.
B. a downward sloping yield curve.
C. a flat yield curve.
参考答案：C
解析：
The nominal spread is the yield to maturity on a bond minus the yield to maturity on a Treasury security of a similar maturity. Because the nominal yield is based on the yield to maturity, it suffers the same shortcomings as yield to maturity. The yield measures assume that all cash flows can be discounted at the same rate (i. e. , assumes a fiat yield curve). They also assume that all coupon payments will be received in a prompt and timely fashion, and reinvested to maturity, at a rate of return that is equal to the appropriate solving rate ( i. e. , the bond's YTM or its BEY).