One of the most commonly used yield spread measures is the nominal spread. Which of the following is NOT a limitation of nominal spread The nominal spread assumes:()
A. an upward sloping yield curve.
B. all cash flows can be discounted at the same rate.
C. all cash payments will be received in a prompt and timely manner.
参考答案：A
解析：
The nominal spread is simply 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 flat 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).