Sentences with phrase «equivalent yield equals»

Now, it looks a little busy up there, but if you look at the top formula, the tax - equivalent yield equals your muni yield divided by one minus your tax rate.

Not exact matches

But after considering the impact of taxes, the taxable - equivalent yield (the return required on a taxable bond to make it equal to the return of a tax - exempt bond) of municipal bonds was a full percentage point higher, at 3.75 %, for investors in the highest (37 %) tax bracket.

But after considering the impact of taxes, the taxable - equivalent yield (the return required on a taxable bond to make it equal to the return of a tax - exempt bond) of municipal bonds was a full percentage point higher, at 3.75 %, for investors in the highest (37 %) tax bracket.

Well, there's a really simple formula that you can use to calculate a tax - equivalent yield so that you can compare the yields on an equal basis.

The tax - equivalent yield is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax - free municipal bond.

The Tax - Exempt / Taxable Yield Equivalents table will help you determine the amount of income you require from a taxable investment to equal the yield on a tax - exempt Yield Equivalents table will help you determine the amount of income you require from a taxable investment to equal the yield on a tax - exempt yield on a tax - exempt bond.

Tax - equivalent yield (TEY) is the yield that a taxable bond must hold to equal or exceed the tax - adjusted yield of a municipal bond.