Sentences with phrase «equivalent yield =»

Tax equivalent yield = tax - free yield / 1 — tax rate.

Not exact matches

For example, if an investor buys a muni bond with a 3 % yield and is subject to a 40 % federal income tax rate, the tax - equivalent yield would be 3 % / (1 — 0.4) = 5 %.

For example, a dividend yield of 3 % is equivalent to an interest yield of 3.9 % (1.3 x 3 % = 3.9 %).