Certainty equivalent
An amount that would be accepted in lieu of a chance at a possible higher, but uncertain, amount. |
Similar financial terms
Bond equivalent yieldBond yield calculated on an annual percentage rate method. Differs from annual effective yield.
Bond-equivalent basis
The method used for computing the bond-equivalent yield.
Bond-equivalent yield
The annualized yield to maturity computed by doubling the semiannual yield.
Cash and equivalents
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and Banker's Acceptances. Cash equivalents on balance sheets include securities (e.g., notes) that mature within 90 days.
Cash equivalent
A short-term security that is sufficiently liquid that it may be considered the financial equivalent of cash.
Cash-equivalent items
Temporary investments of currently excess cash in short-term, high-quality investment media such as treasury bills and Banker's Acceptances.
Common stock equivalent
A convertible security that is traded like an equity issue because the optioned common stock is trading high.
Corporate taxable equivalent
Rate of return required on a par bond to produce the same after-tax yield to maturity that the premium or discount bond quoted would.
Coupon equivalent yield
True interest cost expressed on the basis of a 365-day year.
