After-tax basis(redirected from After Tax Basis)
A comparison of net yield between taxable and tax-exempt bonds, especially corporate bonds and tax-free municipal bonds. 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. See also: Municipals-over-bonds spread.