STEP 0: Pre-Calculation Summary
Formula Used
Credit Spread = Corporate Bond Yield-Treasury Bond Yield
CSP = CBY-TBY
This formula uses 3 Variables
Variables Used
Credit Spread - Credit Spread refers to the difference in yield or interest rate between two debt securities with similar maturities but differing credit qualities.
Corporate Bond Yield - Corporate Bond Yield refers to the rate of return or interest rate that investors earn from investing in a corporate bond.
Treasury Bond Yield - Treasury Bond Yield refers to the rate of return or interest rate that investors earn from investing in a government-issued treasury bond.
STEP 1: Convert Input(s) to Base Unit
Corporate Bond Yield: 2.5 --> No Conversion Required
Treasury Bond Yield: 1.96 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CSP = CBY-TBY --> 2.5-1.96
Evaluating ... ...
CSP = 0.54
STEP 3: Convert Result to Output's Unit
0.54 --> No Conversion Required
(Calculation completed in 00.004 seconds)
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## Credits

Created by Kashish Arora
Satyawati College (DU), New Delhi
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Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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Credit Spread = Corporate Bond Yield-Treasury Bond Yield
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Credit Spread = Corporate Bond Yield-Treasury Bond Yield
CSP = CBY-TBY

Credit spread refers to the disparity in yield, or return, between two debt instruments of the same maturity but possessing different credit ratings. It represents the difference in returns resulting from varying credit qualities. In simpler terms, credit spread measures the additional compensation investors demand for assuming higher credit risk.

## How to Calculate Credit Spread?

Credit Spread calculator uses Credit Spread = Corporate Bond Yield-Treasury Bond Yield to calculate the Credit Spread, Credit Spread refers to the disparity in yield, or return, between two debt instruments of the same maturity but possessing different credit ratings. Credit Spread is denoted by CSP symbol.

How to calculate Credit Spread using this online calculator? To use this online calculator for Credit Spread, enter Corporate Bond Yield (CBY) & Treasury Bond Yield (TBY) and hit the calculate button. Here is how the Credit Spread calculation can be explained with given input values -> 0.54 = 2.5-1.96.