Series 65: Yield Spread

Taken from our Series 65 Online Guide

Yield Spread

Yield spread is the difference in yields between a bond’s yield and some benchmark. 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 wan

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