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Bond Yield Spread in Basis Points Calculator
Subtract a government benchmark yield from a corporate yield.
- Formula & worked example
- Private in your browser
- No signup
Calculator inputs
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How to use this calculator
- Enter the known values in the units shown. Results update as you type.
- Edit a calculated value to solve backwards, or lock a value to hold it fixed.
- Use the worked example to check the method. Reset restores the starting fields.
Use the result with context
Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.
Formula and method
A corporate yield of 6% minus a government benchmark yield of 4% gives a spread of two percentage points, or 200 basis points.
Spread in basis points = corporate yield (%) − government yield (%), multiplied by 100
Worked example
Enter these known values and leave the other values blank.
- Corporate bond yield
- 6 %
- Government bond yield
- 4 %
- Credit spread
- 200 ‱
Assumptions and limitations
- Use comparable maturity, currency and yield conventions. Differences in liquidity, embedded options and other terms can affect the spread as well as credit risk.
- Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.
Common questions
Can I compare any two bond yields?
Use comparable maturity, currency and yield conventions. Differences in liquidity, embedded options and other terms can affect the spread as well as credit risk.
References
The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.
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