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Certainty equivalent |
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Certainty equivalentAn amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount.Certainty equivalent Similar MatchesBond equivalent basisBond equivalent basisThe method used for computing the bond-equivalent yield. Corporate taxable equivalentCorporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to maturity that the quoted premium or discount bond would generate. Certainty Equivalent ReturnCertainty Equivalent ReturnThe certain (zero risk) return an investor would trade for a given (larger) return with an associated risk. For example, a particular investor might trade an uncertain expected 4% active return with 6% risk, for a certain active return of 1.5%. Common stock equivalentCommon stock equivalentA convertible security that is traded like an equity issue because the optioned common stock is trading at a high price. Tax equivalent yieldTax equivalent yieldThe pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond. Further SuggestionsEquivalent annual costCoupon equivalent rate cash and equivalents Equivalent annual annuity Corporate equivalent yield equivalent strategy Equivalent annual benefit Equivalent loan Equivalent quota Coupon equivalent yield Equivalent bond yield annual equivalent rate Equivalent variation Producer subsidy equivalent Tariff equivalent equivalent pension benefit Equivalent tariff Bond equivalent yield Ad valorem equivalent |
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