A
AcadiFi
Fixed IncomeMedium

Granite Fixed Income Fund holds a 10-year corporate bond issued by Evergreen Industries with an option-adjusted spread (OAS) of 180 bps. A comparable bond from Timberline Corp has an OAS of 120 bps. Both bonds have similar credit ratings and maturities. The most likely explanation for the difference in OAS is:

CFA Level II — Fixed Income Practice Question | AcadiFi | AcadiFi