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What Is a Tax-Equivalent Yield?

By Adam Levy – Updated Oct 23, 2024 at 9:46AM

Key Points

  • Tax-equivalent yield compares tax-exempt and taxable bond returns for better investment choices.
  • Your location's tax rates affect the tax-equivalent yield, making some bonds more beneficial.
  • Assess not only tax advantages but also risk levels and investment account type when choosing bonds.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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