HomeDefinitionsCompareDebt Certainty equivalentThe financial definition for Certainty equivalent:An amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount. Similar MatchesBond equivalent basisBond equivalent basisThe method used for computing the bond-equivalent yield. Bond equivalent yieldBond equivalent yieldBond yield calculated on an annual percentage rate method. Differs from annual effective yield. Certainty Equivalent ReturnCertainty Equivalent ReturnThe certain (zero risk) return an investor would trade for a given (larger) return with an associated risk. For example, a particular investor might trade an uncertain expected 4% active return with 6% risk, for a certain active return of 1.5%. Further SuggestionsCommon stock equivalentCorporate equivalent yield Corporate taxable equivalent Coupon equivalent rate Coupon equivalent yield Equivalent annual annuity Equivalent annual benefit Click to compare definitions of Certainty equivalent Click to view definitions beginning ce |