corporate equivalent yield


Comparison of the after-tax yield of two different bonds, one corporate bond selling at par and one government bond selling at a discount. These are used for comparison because government bonds usually have lower interest rates but are subject to lower - and sometimes nonexistent - taxes, while corporate bonds have higher interest rates but are subject to higher taxes. Calculated by: (after tax yield to maturity)/(1-tax rate).
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
corporate credit corporate fiduciary