equivalent taxable yield

Definition

The yield needed on a taxable investment in order to match the tax-free return offered on a municipal bond; calculated by dividing the tax-exempt yield by (1 minus the investor's marginal tax rate). also called yield equivalence.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Popular 'Bonds' Terms

bond
debt/equity ratio
security
market capitalization
finance

yield
surety bond
derivative
debenture
risk

equivalent taxable yield in the news

Enter your email address to get our free Term of the Day newsletter!

Tools

equivalent taxable yield is ...

... part of the Bonds and Taxes subjects.

Nearby Terms

equity swap
equity turnover
equity value
equity-indexed annuity
equity-linked note
equivalent taxable yield
ERISA
Eritrean Nakfa
ERN
erosion
ERP