Q551
Difference between bond's yield and any other security yield having same maturities is considered as
A.
maturity spread
B.
bond spread
AnswerC.
yield spread
D.
interest spread
Answer: Option B
Solution
Answer: Option B
Solution:
Difference between bond's yield and any other security yield having same maturities is considered as bond spread. The term “bond spreads” or “spreads” refers to the interest rate differential between two bonds.