Question: Differences or the spread between yields on corporates and treasuries (or any pair of bonds) are measured in terms of basis points or 1/100 per
Differences or the spread between yields on corporates and treasuries (or any pair of bonds) are measured in terms of basis points or 1/100 per cent of an interest rate. Thus, if the spread between two bonds is 50 or 50 points, the yields differ by .5 percentage points, such as 4.0 compared to 4.5. What factors might cause spreads to change?
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