Series 82: 3.3.1.4.3. Yield Spread

3.3.1.4.3. Yield Spread

Yield spread is the difference between a bond’s yield and some benchmark yield. The most common spread compares the yield of a bond against the yield of a U.S. Treasury security of a similar maturity. Treasury securities are perceived to be virtually risk-free, so they serve as a useful benchmark to compare a bond’s yield to. For example, you may w