Prudy

What Are You Being Paid for Your Bonds?

I am new to fixed income investing, so bear with me, but in order to use the above formula to derive the credit risk rate of a particular individual bond or a bond fund (like the LQD) what rate would I use in place of the market rate for 10-yr AA Corporate's (the 4.72 above)?

Are we looking at the current yield?

Thanks in advance