Sentences with phrase «free equivalent yield»

The tax - free equivalent yield you would have to earn to net 25.25 percent would be 35.35 percent in the 35 percent federal tax bracket!»

Not exact matches

We believe that long - term tax - free municipal bonds that offer near - 4 % yields (a 6.62 % taxable equivalent at today's top rate and 6.15 % even at the new proposed top rate of 35 %) still offer superior value.

The tax - free yields range from 3.6 % — 4 % for a 20 - year duration, equivalent to a gross yield of 5 % — 5.5 %.

The tax equivalent yield formula is used to compare the yields between a tax - free investment and a taxable investment.

An investor in the 35 % tax bracket can calculate the tax - equivalent yield for a tax - free bond yielding, say, 4.25 %:

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.

For example, a tax - free yield of 7 % is equivalent to a taxable yield of 9.7 % for an investor in the 28 % federal income tax bracket, and to a taxable yield of 10.9 % for an investor in the 36 % tax bracket.

The investment - grade issues in the S&P National AMT - Free Municipal Bond Index have a tax - equivalent yield of 3.36 %, which is superior to the S&P U.S. Issued Investment Grade Corporate Bond Index yield of 3.13 %.

Ally Bank boasts a free high yield checking account that has the potential to earn you the equivalent of interest you'd get from a high interest savings account.

So a 4 % tax - free yield with a 25 % tax rate is the equivalent of 5.33 % taxable.

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.

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

To determine whether or not a tax - free bond is a better option than a taxable bond, simply apply the Tax Equivalent Yield (TEY) formula.

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.

For example, a 3 % tax - free yield is equivalent to a 4.62 % taxable yield for an investor in the 35 % federal income tax bracket.

Investment Calculator # 20: This calculates the taxable equivalent yield after inputting a tax - free yield.

Taxable Equivalent Yield is the yield that must be received from a taxable investment to deliver the same after - tax return as a tax - free investYield is the yield that must be received from a taxable investment to deliver the same after - tax return as a tax - free investyield that must be received from a taxable investment to deliver the same after - tax return as a tax - free investment.

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 %.

This chart shows the taxable yield you would need to achieve at your tax rate to generate after - tax income equivalent to that of a tax - free vehicle.

This calculator will tell you the taxable equivalent yield of a tax - free investment.

Investing Compare taxable / tax - free investment return Tax equivalent yield What is the future value of an annuity?