Sir what is bid yield??
And why credit spread are not adjusted to bid yield???
Ask the Tutor ACCA AFM
Bid yield
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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