Example 4 for reading 14

CFA Level III Fixed Income
#1

I see they have an errata but I think it’s wrong.

For part 2, they write for step 3:
1.55% + 1.29% = 2.73%. 2.73% is obviously wrong and the total is 2.84% when the two numbers add together. Besides that and a second mistake (i think), why are they using the yield spread of 1.29%? They should be using the G-spread of 1.20%. And I then get a total of 1.55 + 1.20 = 2.75%.

#2

I agree with you.
The opeining comments of explanation (in errata) make no sense otherwise.

The idea of the question is that if you use the spread on the closest o-tpr bond nothing has changed but we we use the G-spread it has.

#3

Thanks mike.