Series 79: Spread

Taken from our Series 79 Top-off Online Guide

Spread

The term spread has three different meanings in a bond context. The first two contexts define spread as the difference in yield between two different categories of bonds. The term is used in two contexts. First, it is used to compare the yields of a corporate bond with the yield of a (safer) U.S. Treasury bond of the same maturity period. For example, the spread between a 20-year Treasury bond paying a

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