tax free investing | arbitrageportfolio.com
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Free Application Download: http://www.arbitrageportfolio.com/After-Tax-Equivalent-Yield-Calculator.xlsx Full Article: http://www.arbitrageportfolio.com/tax-exempt-investing-and-municipal-bonds Tax Exempt (Free)Investing Investing in tax exempt securities like municipal bonds is a very simple way to produce tax efficient returns without the complications of a corporate structureTRANSCRIPT
Tax Exempt (Free)Investing
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Investing in tax exempt securities like municipal bonds is a very simple way to produce tax efficient returns without the complications of a corporate structure.
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Tax Equivalent Yield Formula:
Yc = Ym / (1-R)Yc: corporate after tax equivalent yieldYm: municipal yieldR: capital gain tax rate bracket
This equation gives us the comparable effective yield between the two investment securities.
Tax Equivalent Yield:
Tax Free Investing Calculator
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Microsoft Office Excel Worksheet