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 ?
The higher nitrogen level increased both phytomass and grain yield ratios at positions C, D and E inside the ACS, indicating that the nitrogen level should be maintained or even increased (Figure 1d,e).
Oat tillering persistence, in terms of both phytomass and grain yield ratios, is dependent on different nitrogen levels at distances relative to adjacent eucalyptus tracks, and different nitrogen levels should therefore be used at those distances to improve the oat yield potential inside ACS in subtropical Brazil.
The most unexpected aspect of the research is the consistently high yield ratios from the developing world.
Model 1 applied the organic: non-organic (conventional) yield ratios derived from studies in developed countries to the entire agricultural land base.
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.
Further, the municipal bond yield ratios for 10- and five-year maturities are also higher than average at 84.
The above hypotheses can be tested by examining the statistical relationship between MMF purchases and the long- and short-term yield ratios.
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.
Under the new name, the fund's stock selection strategy will incorporate new methods for identifying undervalued stocks and will be less tied to traditional measures of value, such as price-book and dividend yield ratios.
SEC also utilized New Redundancy technology to improve yield ratios at mass manufacturing.