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Calculation of Tax Effective Yields for Discount Instruments

Journal of Financial and Quantitative Analysis 1970 5(2), 265
This paper proposes a model that a dealer or investor may employ in determining• The potential investment value of a debt instrument, • The potential gains in net after-tax yield which result from swaps, and• The trade-off, effective, after-tax yield on a municipal vs a taxable corporate bond of the same quality or rating.