yield equivalence

yield equivalence definition - business

yield equivalence

Equal aftertax returns on different investments. As an example, for an investor in a 25% marginal tax bracket, a corporate bond with a taxable return of 6% has yield equivalence with a tax-free bond returning 4.5%.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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