Terms Beginning With 'y'

Yield equivalence

  • January 07, 2020
  • Team Kalkine

Yield equivalence is important to municipal bond investors and is defined as the rate of interest on taxable security that would produce a return equivalent to the return of security which is tax-exempt, and vice versa. It is the yield a taxable investment would have to provide to equal the tax-free yield on a municipal bond.

x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK