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Answer to Question #72063 in Economics of Enterprise for Karun Ghimire

Question #72063
Explain th economic impact of narrowing yield gap - he difference between the 90 day Bill rate and the 10yr bond rate
Expert's answer
The yield gap or yield ratio is the ratio of the dividend yield of an equity and the yield of a long-term government bond. Typically equities have a higher yield (as a percentage of the market price of the equity) thus reflecting the higher risk of holding an equity.

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