maturity spread
bond spread
yield spread
interest spread
Answer is Wrong!
Answer is Right!
The correct answer is: C. yield spread.
A yield spread is the difference between the yields of two or more similar securities. In this case, the two securities are bonds with the same maturity. The yield spread is a measure of the relative risk of the two bonds. A higher yield spread indicates that the bond is considered to be riskier.
The other options are incorrect.
- Maturity spread is the difference between the maturities of two or more securities.
- Bond spread is a general term that can refer to any difference in yield between two or more bonds.
- Interest spread is the difference between the interest rates on two or more loans.