Fed Model Equity Vs Bond Yield
Calculator

Inputs

Yield gap (%)
1.299999

Results

Yield gap (%)
1.299999
Equity-to-bond yield ratio
1.309523

Investing results

Yield gap (%)1.299999
Equity-to-bond yield ratio1.309523

formula-map diagram

Yield gap (%)
1.299999
Equity-to-bond yield ratio
1.309523

Investing relationship

Formula

Fed model spread = earnings yield − 10-year bond yield

= 1.3

Note

This is not investment advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, ignores taxes, fees, currency effects and credit risk, and assumes cash flows arrive exactly as scheduled. Real markets do not behave that way, and past or projected returns do not guarantee future results. Check the assumptions and consult a licensed adviser before acting on any figure.

More in Investing and markets

See all →