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.
Not exact matches
The bonds of iHeartMedia have long been in the basket of «distressed debt,» meaning their prices have fallen
so far to where their
yields are at least 10 percentage points higher than
equivalent Treasury
yields.
They must by law do what all other corporations do and that is called due dilligence in administration of 401K funds, The cottage industry of «Christian» funds does not have a net
yield or beta
equivalent net
yield after cost
so they would be putting their employees personal nest eggs in a riskier product.
Most of Marvel Studios's films are the cinematic
equivalent of breadcrumbs, which have been dropped into theaters strategically
so as to keep one looking for the next sequel or crossover, when the endless televisual exposition will eventually, theoretically
yield an event of actual consequence.
The
equivalent would be computed by taking 1.1 to the 5th power which
yields 1.61051
so your salary
equivalent would be $ 1,610.51 assuming dollars and cents like US and Canada.
If you are paying 25 %, then the taxable
equivalent yield for the muni is only 4.67 %,
so the taxable bond at 5 % is still a better deal.
So a 4 % tax - free
yield with a 25 % tax rate is the
equivalent of 5.33 % taxable.
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.
So, looking for stocks with an earnings
yield of 12.2 % or more is roughly
equivalent to searching for stocks that possess a P / E ratio of 8.2 or less.)
While a
yield of 6.01 % doesn't exactly make me giddy with excitement, it is completely tax - free, which makes it
equivalent to a taxable 8 - 9 %
yield,
so it's actually a respectable
yield compared to taxable dividends.
Result: To find the tax -
equivalent yield, you would divide the municipal bond's
yield by 0.76,
so the tax -
equivalent yield for a 4 % muni would be 5.26 %.
So, for example, 2C of warming (roughly
equivalent to 2.6 C above pre-industrial) could cause sorghum crop
yields to drop by 17 %.