Corporate taxable equivalent

Corporate taxable equivalent

Rate of return required on a par bond to produce the same after-tax yield to maturity that the quoted premium or discount bond would generate.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Corporate Taxable Equivalent

The yield to maturity on a bond issued at par that would equal the after-tax yield to maturity on a similar bond that is issued at a premium or discount to par. See also: Taxable equivalent yield.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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