breakeven spread analysis

[sachin_patel]

in reading 23, example 20, the spread between japanese and french bond is 300 bps.
but when calculating breakeven spread, they used quarterly yield income of 75 bps. why is that?
Also after calculating spread widening, (w=0.1071) they did not annualize it.
Am I missinng something?

 

[FrankCFA]

Because Japanese investor only wants to hold the French bond for a quarter?

 

[sachin_patel]

Thanks, Its not so clear in the example.

 

[Miamia]

it’s truly confusing. In the breakeven analysis, we need to consider timing but for other spread calculation, we don’t. Could someone provide an explaination? There’s not much room in my brain now to memorise.