Narrow spread = positive change?

CFA Level III Derivatives
#1

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just want to confirm that this is an error or I’m making a mistake somewhere.

The question says “The investor expects the OAS of the BBB-rated index to narrow to 285 basis points in 12 months” from OAS of 325

So there should be a negative sign infront of the 0.40% in the formula, right?

#2

Yes. But 5.41% is the right computation

#3

lmao I was too focused on the formula, if I just checked on the answer, it was just a typo.