What is fixed-equivalent yield and how is it derived? Thanks!
Quote [fixed equivalent] yield is determined by assuming the coupon rate on the floater is swapped to a synthetic fixed rate and then solving for the internal rate of return. Endquote link
In other words it is based on seeing what kind of fixed rate you can get in the swap market for the floating rate payments from the bond, then seeing what Yield to Maturity you get on a bond with such (hypothetical) fixed coupons, the other facts about the floating bond (maturity and price) remaining unchanged.