Calculate the I-spread (Interpolated spread) - the difference between a bond’s yield to maturity and the swap rate of equivalent maturity. The I-spread uses the swap curve as the benchmark rather than government bonds, making it more appropriate for credit analysis since swap rates better reflect interbank lending rates. Used extensively in corporate bond markets and credit default swap pricing. More stable than G-spread as it removes sovereign risk component. [Tier: STANDARD, Credits: 2]
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