Yield ratio

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Yield ratio

The quotient of two bond yields.

Yield Ratio

A comparison of the expected yield of one bond to the expected yield of another. A yield ratio is important when deciding whether to invest in one bond or another; generally, the one with the higher yield wins out. However, it is important to take into account the after tax basis when taking the yield ratio of a corporate bond and a tax-exempt municipal bond. A corporate bond yields less than its stated interest rate because of taxation, whereas a tax-exempt municipal bond does not. Thus, a municipal bond paying a lower interest rate will often net the bondholder more than a corporate bond with a slightly higher interest rate, depending upon one's tax bracket.
References in periodicals archive ?
7 The Importance of Ceramic Capacitor Yield Ratios To Profitability: 98 6.
Japan appears under-valued on Equity-Bond Yield ratios.
The most unexpected aspect of the research is the consistently high yield ratios from the developing world.
Based on 293 examples, they came up with a global dataset of yield ratios for the world's major crops for the developed and the developing world.
Despite modest average yield ratios (less than four to one for rye), high overhead, taxes, and additional rents in cash and kind, peasants with full farmsteads (sixty to seventy-five acres of arable) retained for their own use approximately fifty percent of their grain surplus in the first half of the eighteenth century.
This rule is used because the high-growth stocks have much more volatile yield ratios than BellSouth has.
Further, the municipal bond yield ratios for 10- and five-year maturities are also higher than average at 84.
12) Attaining acceptable yield ratios using standard production processes requires coordinating and adjusting hundreds of separate manufacturing stages, some of which involve new machinery and techniques, because processes used in research and development are not directly transferable to regular production lines.
First-time freshmen selectivity and student yield ratios are consistent with Fitch's `BBB' medians for private universities.
Similarly, if the huge quantities of alcohol consumption that certain statistical studies present can be believed, then, given the low yield ratios in grain production typical of traditional Europe, most of the harvest would have to have been allocated to brewing (although this would not apply to wine-consuming areas).
Yield ratios for American Airlines at MIA are on average,about 2% higher for domestic passengers and 24% higher for international passengers, than its other hub airports.
Lincoln says muni's should also offer lower yield ratios versus governments, as muni's outperform governments in 1995.