Equivalent bond yield


 

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Equivalent bond yield

Annual yield on a short-term, noninterest-bearing security calculated for comparison to yields quoted on coupon securities.



Equivalent bond yield

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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.


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Tax equivalent yield

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


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Bond equivalent basis

Bond equivalent basis

The method used for computing the bond-equivalent yield.


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