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| {{Orphan|date=February 2009}}
| | I'm Shani (25) from Tret, Italy. <br>I'm learning Japanese literature at a local college and I'm just about to graduate.<br>I have a part time job in a the office.<br><br>Visit my homepage; [http://test.mike5810.com/blogs/post/12413 wordpress dropbox backup] |
| '''Yield gap''' or yield ratio is the ratio of the [[dividend yield]] of an equity and the [[yield (finance)| yield]] of a long-term government bond. Typically equities have a higher yield (as a percentage of the market price of the equity thus reflecting the higher risk of holding an equity.<ref>[http://glossary.reuters.com/index.php/Yield_Gap Yield Gap]; Reuter's Financial Glossary</ref> | |
| <ref>[http://moneyterms.co.uk/yield-gap/ Yield Gap]; Moneyterms</ref>
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| <math>\mbox{Yield Gap} = \frac {\mbox{Yield Ratio of Equity}} {\mbox{Yield Ratio of Bond}}</math>
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| The purpose of calculating the yield gap is to assess whether the equity is over or under priced as compared to bonds. For a given equity, the following cases may be considered:
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| * If the yield gap is numerically small, then equity yield is lower than bond yield implying that the equity is overpriced.
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| * If the yield gap is numerically large, then equity yield is higher than bond yield implying that the equity is cheap.
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| == See also ==
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| [[Yield (finance)]]
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| == References ==
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| {{reflist}}
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| [[Category:Financial ratios]]
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| {{econometrics-stub}}
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Latest revision as of 09:26, 27 April 2014
I'm Shani (25) from Tret, Italy.
I'm learning Japanese literature at a local college and I'm just about to graduate.
I have a part time job in a the office.
Visit my homepage; wordpress dropbox backup