Marginal Tax Bracket

Tax-Equivalent Yield
Tax-Equivalent Yield is a pretax yield that a taxable bond must offer to match the tax-free yield of a municipal bond, calibrated to an investor's specific tax bracket.
Yield Equivalence
Yield equivalence is the rate of interest at which a tax-exempt bond and a taxable security of similar quality provide the same after-tax return. This concept is essential for investors comparing tax-exempt and taxable investment options.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.