But factor in munis» tax exemption, and that's a 4.42 % taxable
equivalent yield on a 30 - year municipal bond.
This allows investors to compare
equivalent yields on the two securities.
Not exact matches
Again, the result might be at most a small rise in
yields on riskless assets matched by an
equivalent tightening of credit spreads.
Taxable
Equivalent Yield: The Taxable
Equivalent Yield assumes the maximum regular federal income tax rate and the Medicare tax in effect
on January 2018.
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.
They use
yields on local Treasury bills (T - bills) or
equivalents to approximate short - term interest rates and make some adjustments to account for government defaults.
Snuffing out a cigarette butt with a 10 - ton boot would be excessive, but using the
equivalent on certain metals can
yield amazing results.
These strains of yeast have the ability to grow anaerobically
on xylose at rates
equivalent to those
on glucose, to consume > 95 percent of the xylose present, even under toxic conditions, and to ferment this xylose to ethanol at high
yield.
The Environmental Protection Agency determined the Fusion Energi has combined city / highway fuel economy in electric mode at the gasoline
equivalent of 100 miles per gallon, and the car
yields 108 miles per gallon
equivalent in the city and 92
on the highway.
All new for the 2016 model year, the Audi A3 Sportback e-tron stuffs the hatch with a plug - in hybrid drivetrain that enables the car to travel
on electric power alone, for up to 16 miles; the gas engine, which gets fuel economy of 35 mpg; or combined gas and electric power, which
yields fuel economy of 83 mpg -
equivalent.
I believe we have a chart we can show you
on how to calculate what we call the «taxable -
equivalent yield,» correct?
Here's a cheat sheet of the taxable
equivalent yield based
on each marginal 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.
This isn't a large incremental gain, but it is roughly
equivalent to 5 months of additional
yield on the initial deposit.
This makes the
yield to maturity easier to calculate for zero coupon bonds, because there are no coupon payments to reinvest, making it
equivalent to the normal rate of return
on the bond.
Take the
yield on a muni bond, and adjust it to make it
equivalent to a bond that is subject to income tax.
In both tables above, the dividend
yield on Betashares recently launched A200 ETF I've estimated from Vanguards
equivalent ASX200 ETF.
The values shown are daily data published by the Federal Reserve Board based
on the average
yield of a range of Treasury securities, all adjusted to the
equivalent of a five - year maturity.
The present value of the principal outstanding at the date of maturity is calculated at an interest rate differential discounted at the «
Yield of Government of Canada Bonds»
on the market with the
equivalent term to maturity plus 0.90 %.
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.
Yields on government securities with maturities
equivalent to the expiry of the option would be the appropriate input into the model.
A callable bond with a call price based
on the greater of (a) par or (b) the price based
on the
yield of an
equivalent - term Government of Canada bond plus a specified
yield spread.
Look at the taxable -
equivalent yield - the
yield you'd need to earn
on a comparable taxable fund after paying taxes to match the
yield of the tax - free fund.
If munis will give you a higher tax -
equivalent yield, you might be tempted to purchase a muni fund that focuses
on bonds from your state, so the interest is exempt from state as well as federal taxes.
Tax -
equivalent -
yields on longer - maturity municipals approach 10 % (again, depending
on tax brackets).
(p. 31) While the interest
on cash and cash
equivalents pay next to zero, a 1.82 % dividend
yield isn't too bad in my book.
For stock market investors the Earnings
Yield on a common stock is the
equivalent of the Cap Rate
on an apartment building investment.
To add some perspective
on this month's dividend increases, the $ 97.06 in my expected annual dividend income that came about totally organically, via those dividend raises, was the
equivalent of investing $ 2,773 in fresh capital at a 3.5 %
yield (approximately my portfolio's average
yield).
At this duration, the
yield on the $ 5 million investment with guaranteed death benefits of $ 50 million is 5.6 %, which, as noted, is income tax — free and equates to a pretax
equivalent yield of 9.3 %.
The modest $ 200,000 paid to these firms, when viewed as an investment in media coverage,
yielded an impressive $ 4,904,233 million return, based
on its
equivalent value to paid advertising.
On average, adaptation improves
yields by the
equivalent of ~ 15 - 18 % of current
yields, but the effectiveness of adaptation is highly variable (medium confidence).
On the narrow issues of the «effective equivalence» of the two methods and whether the alternate was «tested in the paper»: in general terms, the two methods are clearly not «effectively
equivalent», though this doesn't exclude the possibility that, by coincidence, they
yielded similar results in a particular case, but this would have to be demonstrated.
But this would be no leap
equivalent to landing
on the moon, because it would not
yield any benefit to us greater than burning coal.
We took the farm tour and viewed large plots of land where the longest - ever side - by - side experiments have been conducted, comparing organic methods with non-organic, measuring
yields, effects
on soil, moisture, humus, microbiological activity, etc. (Initially, organic farming
yields drop off, but within a few years, organic
yields are
equivalent of chemical farming
yields, but in drought years, organic agriculture provides higher
yields.
Within this context, a conservative investor may prefer to evaluate an investment
on the basis of the achievable
equivalent yield as opposed to the achievable equated
yield.