By property type, RERC found that required weighted-average unleveraged pretax yield
rates increased slightly for offices and apartments but remained flat for the industrial, retail and hotel sectors in fourth-quarter 2013.
The real pretax yield
is $30 regardless of the inflation rate, since the bond is adjusted for inflation.
The pretax yield
or internal rate of return for central business district office properties was 8.4% and 8.9% for suburban properties.
The Visa card on average generates a pretax yield
in the 11 percent range, he added.
(3) The classic example of implicit taxes in asset prices is the lower average pretax yield on tax-exempt bonds compared to taxable bonds.
Pretax yields of state and local government (SALG) bonds are examined for evidence of implicit taxes.
x (1 - Federal tax rate - state tax rate) = After-tax yield
In fact, two state munis are averaging a pretax yield
of 6.1 %.
First-quarter 2003 pretax yield
rate expectations reported by RERC for all property types on an institutional level are lower than at any time since before Sept.
Figure 3 CBD & Suburban Office Summaries CBD Office Summary 1Q98 4Q97 1Q97 Pretax Yield
11.1 11.4 11.6 Going in Cap Rate 8.5 8.6 9.2 Investment Rating 6.8 6.9 6.3 on a scale of 1 to 10 Risk of Overbuilding 2.9 Buy Sell Hold Investment Rec.
In exhibit 3, part 1, taxable interest income reduces a 7% pretax yield
to a 3.32% aftertax yield and increases the effective marginal tax rate from 35% to 52.57%.
Thus, if current pretax yields
were 5%, a taxable savings account would yield only 3.45% affertax while the savings bond could yield the full 5%.