Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Yield equivalence

Updated on 2023-08-29T11:56:10.060922Z

Yield equivalence is important to municipal bond investors and is defined as the rate of interest on taxable security that would produce a return equivalent to the return of security which is tax-exempt, and vice versa. It is the yield a taxable investment would have to provide to equal the tax-free yield on a municipal bond.