New Debt Rate Calculator

Credit Rating

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Investment Grade High Yield

Maturity (Years)

1Y2Y3Y5Y7Y10Y20Y30Y

Structure

Estimated Pricing

Spread over Benchmark

— bps

Estimated Coupon
— %

Calculation Components

① Benchmark Treasury Yield —

② Base Credit Spread (5yr OAS) —

③ Term Multiplier —

④ Term-Adjusted Spread = ② × ③ —

⑤ Structure Adjustment —

⑥ Total Spread = ④ + ⑤ —

⑦ Raw Coupon = ① + ⑥ —

⑧ All-in Coupon (rounded to 1/8) —

Sources & Methodology

Benchmark Treasury Yields — Based on U.S. Treasury constant maturity rates published by the U.S. Department of the Treasury and the Federal Reserve (FRED).
Base Credit Spreads — Derived from historical option-adjusted spreads (OAS) by rating, referencing the ICE BofA US Corporate Index spread data and comparable indices for high-yield (ICE BofA HY).
Term Spread Curve — Multipliers approximate the typical credit spread term structure observed in S&P Global Ratings and Moody's research on corporate bond pricing across maturities.
Structure Adjustments — Based on typical market conventions for seniority premiums, referencing recovery rate differentials from Moody's Annual Default Study and market pricing data from Bloomberg.
Coupon Rounding — Coupons rounded to the nearest 1/8th (12.5 bps), following standard US bond market convention.

Approximate values for illustrative purposes only. Actual pricing depends on market conditions, issuer-specific factors, deal size, and investor demand.