Tax-equivalent yield

Definition:

The pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond.

Investing Essentials


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

Term of the Day

Gross profit margin

Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.

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