HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Tax Equivalent Yield

The tax equivalent yield formula is used to compare the yield between a tax-free investment and an investment that is taxed. One of the most common examples of a tax-free investment is municipal bonds. Municipal bonds are generally issued by local governments to finance development in its local community.

$\frac{t}{1-r}$

Here,t=tax free yield,r=tax rate.

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