An easy way to determine if an investment is a good deal or not is to compare your forecasted rate of return to a risk free rate such as a 10 year government bond yield.

However sometimes it is hard to come up with an accurate forecasted return because there are so many assumptions that have to be estimated and many have a large impact on the calculation.

Fortunately, there is an easy answer in the bond market.

It’s easy because there aren’t as many assumptions or estimates that need to be made.