CFA CFA Level 3 Yardeni


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    • Avatar of JohnsoadJohnsoad
        • CFA Level 3

        doing some final review and realized the yardeni model doesn’t specify the the maturity of the a-rated corporate bond to be used. Fed uses 10 year treasuries, safe to assume they want you to use a 10 year corporate for yardeni?

        If your time horizon is longer than 10 years and they include data for an A rated corporate with a 15-20 year maturity, wouldn’t it make more sense to use one of those. IDK…….. maybe my brain is just fried.

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        I looked at the CFAI books just now — you’re right, I can’t see right away what maturity should be used. The solved example just said ‘Moody’s A rated corporate bond yield’.

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