What is the focus of the RVD function?

The RVD function is designed to assess relative bond value, providing users with insights into various dimensions of bond pricing, including yield spreads, duration, and overall bond performance in context. This functionality allows users to compare the value of specific bonds relative to one another, which is critical for making informed investment decisions.

By focusing on relative value, the RVD function allows investors to evaluate how a bond measures up against its peers, taking into account different characteristics such as credit ratings, maturity dates, and market shifts. This is essential for portfolio management and trading strategies, where understanding the comparative value of fixed-income securities is crucial.

The other options touch on aspects of bond analysis but do not encapsulate the primary focus of the RVD function. For example, while graphing historical spreads or analyzing projected forward rates is relevant to bond evaluation, they do not specifically denote the primary function of assessing relative bond value, which is the core intent behind the RVD tool.