Yield ratio

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 ?
Suwaidiyah Power Station-I was small, with three turbines using associated gas from the Suwaidiyah field installed by end-1973: two Hitachi turbines with 18.75MW design capacity, at 27[degrees]C, and a 24% yield ratio; and one AOG turbine with 19.5MW design capacity, at 27[degrees]C, and a 28% yield ratio.
Experts pointed out that from the perspective of dividend yield ratio, the Bank's dividend yield ratio was 5.1%, well above the benchmark of ICBC's ordinary A-share price at the end of 2015, and much higher than the one-year fixed deposit rate and the one-year government bond yield.
7) Finally, the earnings yield/bond yield ratio is currently close to an allatime high, and hence Russian equities now look very attractive relative to bonds (see Chart of the Month).
For each of 293 comparisons of organic or semi-organic production to locally prevalent methods under field conditions, the yield ratio is the ratio of organic: non-organic production.
The municipal bond yield ratio for short-term bonds is normally smaller than for long-term bonds; the yield on municipal bonds with a one-year maturity averages only about 70% of the yield on comparable taxable bonds.
The data, when plugged into a formula, give a yield ratio of 13.
where [Y.sub.e]/[Y.sub.t] is referred to as the yield ratio. All else the same, the equation implies that increases in tax rates should cause a decrease in the yield ratio.
Oswalt, Northrop, covered Phase 11 of "A Study of the Relationship of Notch Yield Ratio and Fracture Toughness of Structural Aircraft Quality D357 Aluminum Casting Alloy" (90-171).
If valid, the levels would yield ratio probabilities, i.e., level 4 patients would die twice as often as level 2 patients.
It had two 200MW units, with a yield ratio of 34-37%.
They began operating in 1989, with a total capacity of 150MW and a 31% yield ratio. Their annual rate of gas consumption in 2010 was about 423 MCM, at a load factor of 100%.