Bond Valuation and Spreads

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November 28, 2016 at 2:23 pm #352172
Muslim Farooque
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sir in estimating the yield curve , why do we add the spread and governement yield curve to arrive at a company yield
November 28, 2016 at 3:05 pm #352189
John Moffat
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Because the spread is the excess over the government yield that the company has to pay (they pay higher interest – how much higher depends on their credit rating).
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