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Z-Spread
Finds the constant spread added to each spot rate that reproduces the bond price.
Formula
P = Σ CF_t/(1+r_t+z)^t
Variables: r_t spot rate; z constant spread
What it means
Finds the constant spread added to each spot rate that reproduces the bond price.
Example
Solve z numerically across the zero curve rather than comparing only one maturity yield.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.