Equivalent loan


 

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Equivalent loan

Given the after-tax stream associated with a lease, the maximum amount of conventional debt that the same period-by-period after-tax debt service stream is capable of supporting.



Equivalent loan

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Equivalent annual cost

Equivalent annual cost

The cost per year of owning an asset over its entire life.


Producer subsidy equivalent

Producer subsidy equivalent

1. Producer support estimate. 2. This ought logically to measure the extent to which existing policies serve to subsidize producers, defined as the ad valorem subsidy that, if paid directly to producers per unit of production, would lead to the same level of output as existing policies.


Equivalent strategy

Equivalent strategy

An options strategy which has the same risk-reward profile as another strategy. For example, a long May 60-65 call vertical spread is equivalent to a short May 60-65 put vertical spread.


Ad valorem equivalent

Ad valorem equivalent

The ad valorem tariff that would be equivalent, in terms of its effects on trade, price, or some other measure, to a nontariff barrier.


Corporate equivalent yield

Corporate equivalent yield

A comparison of the after-tax yield of government bonds selling at a discount and corporate bonds selling at par.


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