Break-even tax rate

Definition:

The tax rate at which a party to a prospective transaction is indifferent between entering into and not entering into the transaction.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Relative yield

Often refers to a yield on a security relative to the yield on a benchmark security (i.e. a ratio). It is more common to consider a yield spread which is just the difference in two yields.

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