Saved Bookmarks
| 1. |
Explain Credit Spread? |
|
Answer» Credit SPREAD is the DIFFERENCE between the VALUE of two securities which have different PRICES but similar INTEREST rates and maturities. It is also defined as the additional interest that is paid by a borrower who has a lower than a satisfactory credit rating. Credit spread is the difference between the value of two securities which have different prices but similar interest rates and maturities. It is also defined as the additional interest that is paid by a borrower who has a lower than a satisfactory credit rating. |
|