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Bid yield

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Bid yield

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • March 21, 2018 at 7:10 pm #443305
    Saimon
    Participant
    • Topics: 123
    • Replies: 55
    • ☆☆

    Sir what is bid yield??

    And why credit spread are not adjusted to bid yield???

    March 22, 2018 at 7:08 am #443351
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54808
    • ☆☆☆☆☆

    Bid yield is the yield (i.e. return) on the bond based on the bid value of the bond i.e. the price payable to buy the bond. The market value of the bond is determined by the yield that investors require. The yield required will already take into account the riskiness of the bond.

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