The yield needed on a taxable investment in order to match the tax-free return offered on a municipal bond; calculated by dividing the tax-exempt yield by (1 minus the investor's marginal tax rate). also called equivalent taxable yield.
Related information about yield equivalence:
- Yield Equivalence Definition | Investopedia
The interest rate on a taxable security that would render a return equivalent to that of a tax-exempt security, and vice versa, calculated as follows:
- Yield equivalence - Financial Dictionary - The Free Dictionary
The interest rate at which a tax-exempt bond and a taxable security of similar quality give the investor the same rate of return.
- Yield differential/pickup - Financial Dictionary - The Free Dictionary
Yield Curve Option-Pricing Models · Yield Curve Strategies · Yield Curve Strategy . Yield differential/pickup. Yield Elbow · yield equivalence · Yield Maintenance ...
- Yield Equivalence: Definition from Answers.com
the rate of interest at which a tax-exempt bond and a taxable security of similar quality provide the same return.
- Y Definitions: Campbell R. Harvey's Hypertextual Finance Glossary
Yield equivalence: The interest rate at which a tax-exempt bond and a taxable security of similar quality give the investor the same rate of return. Yield ratio: The ...
- Yield To Maturity - Hewitt Financial Services - Investment Glossary
See: Yield Equivalence; Yield To Call; Yield To Maturity. Yield Advantage When an investor buys a corporation's convertible security instead of its common stock ...
- What is equivalent taxable yield? definition and meaning
... return offered on a municipal bond; calculated by dividing the tax-exempt yield by (1 minus the investor's marginal tax rate). also called yield equivalence.
- yield spread - Business Definition
Yellow Sheets · yield advantage · yield basis · yield curve · yield equivalence · yield to average life · yield to call · yield to maturity (YTM) · yield to par call ...