How To Calculate After Tax Yield On Municipal Bonds?
Calculate your tax rate’s reciprocal (1 your tax rate). If you pay 25% tax, your reciprocal is (1 -.25) =.75, or 75%. To calculate the TEY, divide this sum by the yield on the tax-free bond. For example, if the bond’s yield is 3%, use (3.0 /.75) = 4%. How can you figure out […]
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