First and foremost thank you for reading my question, I hope all if you have a Happy Holiday this weekend.
On to my question:
I am completing an assignment on global sovereign bonds, I've been provided with a deck of countries followed with data on bond issuance date, maturity, coupon. The deck also includes yield (to maturity, call, worst), spread and et cetera.
I am asked to calculate expected total returns over the next 12 months based on target spreads provided. I am to categorize the expected returns into different categories (e.g. 5-10 year maturity sovereigns, credit rating).
On each of these categories I am to calculate expected return from spread and expected return from carry (i.e. yield).
I'm confused by what the difference between these two are.