yield ratio quick q

CFA Level I
#1

is it higher yield/ lower yield? the mock on cfa site says otherwise =S

#2

oh no is everyone off to bed already ?

#3

Pretty sure - but they usually only give you that with one corporate and one treasury, and so it’s corporate yield / treasury yield

#4

Easy way to memorize this…the yield ratio is always > 1 in case you need the following: Yield A = High Yield, Yield B = Low Yield Absolute Yield = Yield A - Yield B (positive spread) Relative = (Yield A - Yield B)/Yield B Yield Ratio = Yield A/Yield B (>1) Good luck ppl!

#5

I’m pretty sure that the denominator is T-yield