bond equity earnings yield ratio (BEER)

Definition

A metric which compares the yields of bonds and corporate earnings. A BEER of 1 indicates equal perceived risk; the first number is the bond yield, the second is the earnings yield. For example, Bond = 5.5%, Earnings = 6% 5.5/6= .92 BEER. Yield figures are typically taken from a benchmark from the bond and stock markets.
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bond dividend bond equivalent yield