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yield equivalence

    0.02 sec.
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 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 8% has yield equivalence with a tax-free bond returning 6%.


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