QuantLib::Bond::cleanPriceFromZSpread

Posted by gigifaye29 on
URL: http://quantlib.414.s1.nabble.com/QuantLib-Bond-cleanPriceFromZSpread-tp7310.html

Can anyone help clarify my question?

In the CallableBonds Class,  does the member function "cleanPriceFromZSpread(...)"  calculate a clean price by discounting the  *unadjusted* cash flows, OR  *adjusted* cash flows(prices on each note revised to strike if option in the money),  by interest tree note rates plus z-spread?

I got confused because the terminology z-spread(zero volatility spread) is used in non-option setting but if this function simply just discounts all unadjusted cashflows then it is not special to this callable bond class anymore.  

If it does discount adjusted cashflows, then shouldn't the spread called OAS instead of z-spread?

Appreciate your correction on my misunderstanding,
Xinc