Login to manage your account

Please enter a valid email address.
Forgot Password?
Please enter a valid password.
OR

Don't have an account yet? Sign up

What is a credit spread?

  1. A The yield difference between a corporate bond and a comparable government bond
  2. B The difference between bid and ask prices
  3. C The gap between coupon and yield
  4. D The spread between two maturities
Answer

The yield difference between a corporate bond and a comparable government bond

Spreads widen when perceived default risk rises or liquidity deteriorates, which is why they are watched as a stress indicator.

All CFA MCQs

Login to manage your account

Please enter a valid email address.
Forgot Password?
Please enter a valid password.
OR

Don't have an account yet? Sign up as