this question come from the CFA institue Practice.
given the same benchmark spread 125 bps? the same benchmark spread is not G spead ? I think this question mabe something wrong, help me .
If I based on the case, the benchmark bond in the question is the on the run 10y Treasury. While the three bonds have different effective duration (hence different maturities, the benchmark spreads (YTM of individual bonds minus YTM of 10y Treasury) are all 125 bps.
The G spread on the other hand will be the YTM of each bond minus the YTM of a government bond of a similar maturity (not given in this case).
So the G-spread of each bond \neq benchmark spread, given their maturities are not likely to be 10 years.
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I am confused on this topic.
Any more wisdom to share?