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