Taxable equivalent yield


Also found in: Acronyms.

Taxable equivalent yield

The return from a higher-paying but taxable investment that would equal the return from a tax-free investment. This depends on the investor's tax bracket.

Taxable Equivalent Yield

The yield of a taxable investment that equals the yield of a tax-free investment with a lower stated yield. A corporate bond yields less than its stated interest rate because of taxation, whereas a tax-exempt municipal bond does not. Thus, a municipal bond paying a lower interest rate will often net the bondholder more than a corporate bond with a slightly higher interest rate, depending upon one's tax bracket. The taxable equivalent yield is the extra yield required on a corporate bond to equal the yield of a municipal bond. See also: Municipals-over-bonds spread, After-tax basis.
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The net proceeds of the sale of the securities have been used to provide short-term liquidity or have been reinvested in intermediate term investment securities with a taxable equivalent yield 86 basis points greater than the disposed securities.
Assuming the Company's income during the year is approximately 85% to 90% exempt from Federal income tax, and assuming a shareholder is in the 35% tax bracket, the taxable equivalent yield would be approximately 11.
The taxable equivalent yield is approximately 13%, assuming approximately 90% of the dividend is exempt from federal income tax and a 39.
Assuming the Company's income during the year is approximately 85% to 90% exempt from federal income tax and a shareholder is in a 35% tax bracket, the taxable equivalent yield would be approximately 11.
The taxable equivalent yield is approximately 14%, assuming approximately 90% of the dividend is exempt from federal income tax and a 39.
18 Securities - nontaxable - adjusted to a taxable equivalent yield 19,870 320 6.
For the year ended December 31, 2004, CharterMac estimates that approximately 90% of its distributions to common shareholders will be federally tax-exempt, resulting in a taxable equivalent yield of approximately 10.
Assuming the Company's income during the year is approximately 90% exempt from Federal income tax, and assuming a shareholder is in the 35% tax bracket, the taxable equivalent yield would be approximately 9.
Assuming the Company's income during the year is approximately 92% exempt from Federal income tax, and assuming a shareholder is in the 35% tax bracket, the taxable equivalent yield would be approximately 11.
30% in 1999, while the taxable equivalent yield on earning assets decreased from 8.