Tax Equivalent Yield =

Loan Yield =

Tax Rate =

"The tax-equivalent yield [TEY] is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax-free municipal bond. This calculation can be used to fairly compare the yield of a tax-free bond to that of a taxable bond to see which bond has a higher applicable yield. It is also known as after-tax yield."

Definition of Tax-Equivalent Yield from [http://www.investopedia.com/terms/t/taxequivalentyield.asp|Investopedia]. Calculation contributed by Steve Holt.

Tax Equivalent Yield

Loan Yield

Tax Rate

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