Maturity 10 yr
Coupon 5.00%
Treasury yield 4.50%
Credit spread 130 bps
Default probability 0.20%
Recovery rate 40%
Implied price
Credit-adjusted YTM
Expected return
Breakeven default rate

Move the sliders to see the spread decompose into expected loss, liquidity and risk premium. Try the 2008 panic preset — even at 18% gross YTM, after credit losses the bond still pays nine percent per year.