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Reading 24, Section 4.1.2 - Bottom up relative value analysis

In this section CFA book says “If investor plans to hold a bond to maturity, the change in credit spread throughout the holding period is effectively zero”. Can someone please explain this statement? 

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If you hold the bond to maturity then the bond’s YTM is the original YTM (I’m ignoring reinvestment risk for simplicity), which includes the original credit spread.

Simplify the complicated side; don't complify the simplicated side.

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Got it. Thanks!

My pleasure.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/