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bond spreads
bond spreads definition - finance
The
difference in interest rates between the yield on a corporate bond and the
yield on a U.S. Treasury bond with similar maturities. Spreads also are
calculated against Treasuries for federal agency debt, such as Fannie Mae
notes, or other government debt. For example, the spread on a 10-year corporate
bond will trade 75 basis points over a 10-year Treasury note.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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