What this calculator does
Credit spread (bond) works out the extra yield a corporate bond pays over a government bond of the same maturity. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaCredit spread = corporate bond yield − government bond yield
The inputs explained
| Field | What to enter |
|---|---|
| Corporate bond yield (YTM) (%) | A number, measured in %. Starts at 5.3. |
| Government bond yield (YTM) (%) | A number, measured in %. Starts at 1.8. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with corporate bond yield (ytm)
Every other input is held at the calculator’s starting values while corporate bond yield (ytm) varies. Select any row to load that scenario into the calculator.