spread of bond A over bond B is 100 bps (assume different countries). bond A has duration of 4 and bond b has duration of 5. there are 3 ways to set a breakeven question: 1. how much of yield change would eliminate the spread advantage. 100/5 = 20 bps 2. how much of yield change in bond A would eliminate the spread advantage. 100/4 = 25 bps. 3. how much of yield change in bond B would eliminate the spread advantage. 100/5 = 20 bps so, implicitly, question 1 is really question 3. isn’t it confusing?