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LSDefine

Simple English definitions for legal terms

yield spread

Read a random definition: coprincipal

A quick definition of yield spread:

Yield spread refers to the difference in the amount of money you can earn from different types of investments. For example, one bond might offer a higher yield than another bond. The yield spread is the difference between the two yields.

Yield to maturity is the rate of return you can expect to earn from an investment if you hold it until it matures. This is important because it helps you understand how much money you can make from an investment over time.

A more thorough explanation:

Yield spread refers to the difference in yield between different securities issues. It is the difference between the yield on a higher-risk investment and a lower-risk investment.

For example, if a 10-year Treasury bond has a yield of 2% and a corporate bond with the same maturity has a yield of 4%, the yield spread between the two is 2%. This means that investors are demanding a higher return for taking on the additional risk of investing in the corporate bond.

Yield to maturity is the rate of return an investor can expect to earn if they hold a bond until it matures. It takes into account the bond's current market price, its face value, the coupon rate, and the time remaining until maturity.

Suppose an investor purchases a bond with a face value of $1,000, a coupon rate of 5%, and 5 years remaining until maturity. If the bond is currently trading at $950, the yield to maturity would be higher than 5% because the investor is buying the bond at a discount. If the bond were trading at $1,050, the yield to maturity would be lower than 5% because the investor is buying the bond at a premium.

yield on investment | yokelet

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babycat
17:14
Balls is my buddy and I love him but he literally does say slurs out on the street
babycat
17:14
Not in a professional setting though
17:14
But does he at work and around school settings?
17:14
Or only wit his homies in his time
Dkk
17:14
Thank you @EvolBunny
babycat
17:14
Yeah and he buys me margaritas :)
babycat
17:15
Idk about horsey that guy seems like a freak
17:15
He is an arsehole but he is your asshole
1a2b3c4d26z
17:15
Would kill for a marg
Dkk
17:15
*spreads ass in mirror to check*
babycat
17:15
one million margs at nyc lsd meetup
Dkk
17:16
Nope, not my asshole.
1a2b3c4d26z
17:17
I will walk to nyc to do this
17:17
send it
1a2b3c4d26z
17:17
omw
17:18
Pick up @splitterusclitterus
letsdoadrill
17:18
What time will UCLA begin giving out decisions tomorrow if there’s a wave?
17:19
Who cares about that carp skool
letsdoadrill
17:19
Me
letsdoadrill
17:20
I don’t really care about bantering here tbh I just thought yall would know the time it would
17:20
off wit ya then oy
babycat
17:20
i have no idea if it happens it happens. look at reddit or something
babycat
17:21
@1a2b3c4d26z: yay
Dkk
17:22
UCLA? I am gunna take a guess and say the wave will come out at 11:22:24 on 11/22/24.
no gtown ....?
17:24
@Dkk: the prophecy has been foretold
Dkk
17:24
Gtown will be at the same time tomorrow. They are all coordinating this.
babycat
17:25
Dk is my favorite adcom
thank you dk :)
1a2b3c4d26z
17:27
You can't just not care about the banter... that's the whole chat
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