If the capital value is not known and we want to calculate it, then
the market equivalent yield or overall required IRR for comparable properties needs to be determined and inserted in the above formula.
• CD equivalent yield (AKA money
market equivalent yield - used to compare T - bills to 360 - day money market instruments).
Not exact matches
Using Robert Shiller's monthly data for U.S. stock
market returns, associated P / E10, short - term bill
yields (six - month commercial paper / one - year U.S. Treasury notes) and long - term bond
yields (10 - year U.S. Treasury notes or
equivalent) during 1871 through 2013, they find that: Keep Reading
The fund had
equivalent positions in the iShares Asia 50 ETF (AIA), iShares Emerging
Markets High
Yield Bond ETF (EMHY), iShares MSCI India ETF (INDA), Columbia Emerging
Markets Consumer ETF (ECON), and BLDRS Emerging
Markets 50 ADR Index Fund (ADRE).
Because of variables in supply and demand, tax - exempt
yields in the municipal
market can sometimes be quite attractive when compared to their taxable
equivalents (see the 2010 Tax Year Tax - Exempt / Taxable Yield Eq
equivalents (see the 2010 Tax Year Tax - Exempt / Taxable
Yield EquivalentsEquivalents).
During the final year of the Fund's operations, as the bonds held by the Fund mature and the Fund's portfolio transitions to cash and cash
equivalents, the Fund's
yield will generally tend to move toward the
yield of cash and cash
equivalents and thus may be lower than the
yields of the bonds previously held by the Fund and / or prevailing
yields for bonds in the
market.»
The present value of the principal outstanding at the date of maturity is calculated at an interest rate differential discounted at the «
Yield of Government of Canada Bonds» on the
market with the
equivalent term to maturity plus 0.90 %.
It's also a small asset management company, it is a net - net with more cash and cash
equivalents than it's
market cap, it is profitable and paying a big dividend (current
yield is 8.5 %).
For example, Vanguard Municipal Money
Market (VMSXX)
yields 1.10 %, which is a taxable -
equivalent yield of 1.75 % for an investor in the 37 % federal tax bracket.
For stock
market investors the Earnings
Yield on a common stock is the
equivalent of the Cap Rate on an apartment building investment.
You can buy here a spreadsheet with all formulas for estimating EV via trial and error if property value /
market price is known or for estimating the value of a reversionary freehold if the appropriate
equivalent yield is known or can be assumed.