The tax-equivalent yield of the muni would be 3 percent divided by the difference of (1 – 0.30). So 3 / 0.7, or 4.28 percent. In other words, the muni pays the taxable equivalent of a bond ...

To calculate the municipal bond taxable equivalent yield, for example, of HYMB for someone in the 35% bracket, the formula is: muni yield/ (1.0 – tax bracket) = taxable equivalent yield.

Despite the premiums for these municipal bonds, their taxable-equivalent yields are attractive when considering that early Tuesday three-year Treasury notes BX:TMUBMUSD03Y traded at a yield of 3. ...

Bonds can be compared in various ways, but for U.S. investors, assuming all the bonds are of similar credit quality, price and taxable-equivalent yield comparisons are of paramount importance when ...