# I-spread

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Bond and yield

The **Interpolated Spread**, **I-spread** or **ISPRD** of a [bond](/source/Bond_(finance)) is the difference between its [yield to maturity](/source/Yield_to_maturity) and the [linearly interpolated](/source/Linear_interpolation) yield for the same maturity on an appropriate reference [yield curve](/source/Yield_curve). The reference curve may refer to [government debt securities](/source/Government_bond) or [interest rate swaps](/source/Interest_rate_swap) or other benchmark instruments, and should always be explicitly specified.[1] If the bond is expected to repay some [principal](/source/Principal_(finance)) before its final maturity, then the interpolation may be based on the [weighted-average life](/source/Weighted-average_life), rather than the maturity.[2]

## See also

- [Asset swap spread](/source/Asset_swap_spread)

- [Option-adjusted spread](/source/Option-adjusted_spread)

- [Z-spread](/source/Z-spread)

## References

1. **[^](#cite_ref-1)** O'Kane, Dominic; Sen, Saurav (March 2004). ["Credit Spreads Explained"](https://web.archive.org/web/20100705043406/http://www.classiccmp.org/transputer/finengineer/%5BLehman%20Brothers%2C%20O%27Kane%5D%20Credit%20Spreads%20Explained.pdf) (PDF). [Lehman Brothers](/source/Lehman_Brothers). pp. 4–6. Archived from [the original](http://www.classiccmp.org/transputer/finengineer/%5bLehman%20Brothers,%20O'Kane%5d%20Credit%20Spreads%20Explained.pdf) (PDF) on July 5, 2010.

1. **[^](#cite_ref-2)** Ho, Thomas S.Y.; Lee, Sang Bin (2004). "Valuation of a Bond". [*The Oxford Guide to Financial Modeling*](https://books.google.com/books?id=ND2aoovv9W0C&pg=PA265). Oxford University Press. p. 265. [ISBN](/source/ISBN_(identifier)) [978-0-19972770-4](https://en.wikipedia.org/wiki/Special:BookSources/978-0-19972770-4).

v t e Bond market Bond Debenture Fixed income Types of bonds by issuer Agency bond Corporate bond Senior debt Subordinated debt Distressed debt Government bond Infrastructure bond Municipal bond Global bond Types of bonds by payout Accrual bond Auction rate security Commercial paper Consol Convertible bond Contingent Reverse Exchangeable bond Extendible bond Fixed rate bond Floating rate note Inverse Inflation-indexed High-yield debt Lottery bond Perpetual bond Zero-coupon bond Bond options Callable bond Convertible bond Embedded option Exchangeable bond Extendible bond Puttable bond Bond valuation Clean price Convexity Coupon Credit spread Current yield Dirty price Duration I-spread Mortgage yield Nominal yield Option-adjusted spread Risk-free bond Weighted-average life Yield curve Yield spread Yield to maturity Z-spread Securitized products Asset-backed security Collateralized debt obligation Collateralized mortgage obligation Commercial mortgage-backed security Mortgage-backed security Institutions Commercial Mortgage Securities Association (CMSA) International Capital Market Association (ICMA) Securities Industry and Financial Markets Association (SIFMA)

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